A senior official from the Central Bank of Russia, Sergey Shvetsov, expressed a lot of hope in ICOs as a potential way of funding entrepreneurs and start-ups.
A senior official from the Central Bank of Russia has expressed a lot of hope in Initial Coin Offerings (ICOs) as a potential way of funding entrepreneurs and start-ups.
Bank of Russia’s first deputy governor, Sergey Shvetsov, has said the central bank is drumming up support for the blockchain funding model. In a statement recorded by Russian state news agency TASS, Shvetsov pointed out to the massive investment potential brought about by ICOs, in which companies and start-ups can raise finances through exchanging cryptocurrencies for cryptographic tokens.
Shvetsov was also keen to highlight Russia’s huge potential to steer innovation. He said that Russia, more than any country in the world, boasts of many students, young people and entrepreneurs who have excellent ideas that can be utilized in business. But the lack of support for the start-ups by classical institutions has made financing harder. Shvetsov went on to suggest ICO development as the only potential way to finance these ideas.
The remarks by Shvetsov come a critical time when Russia’s central bank had just released an official notice warning the public of the risks of adopting and/or investing in ICOs and cryptocurrencies.
In what could be interpreted as a shift of stance, the official Kremlin documents published this October reveal that Russian president Vladimir Putin did approve the framework to regulate ICOs as well as cryptocurrency mining operations in the country.
While Shvetsov didn’t outline a framework that can support ICOs in Russia, he remained optimistic saying ICO will soon enter Russia’s financial market.
It’s only in September, before the turnabout, that Shvetsov had vehemently stated Russia’s intention to block all bitcoin exchange websites, saying bitcoin price’s volatility come with risks that everyday retail investors cannot handle.
Will the ICO finally be adopted into the Russian market? Well, we’ll just have to wait and see.