Bitcoin Bubble Burst as Predicted - Russian Economy Minister

MOSCOW (Sputnik) - Bitcoin has now "deflated like a soap bubble" but boosted investments in new technologies, Russian Economic Development Minister Maksim Oreshkin said Wednesday.

'You may recall what I said, for example, last year, when Bitcoin's price jumped up to $20,000, and now it is lower than $4,000, we said very simple things. Bitcoin itself is a soap bubble, it deflated, that's what happened… Unfortunately, many people were affected [because of their investments in cryptocurrency], but again, in terms of new technologies, new businesses, it gave a positive impetus," Oreshkin said in an interview to the Russian RBC TV channel on the sidelines of the VTB Capital investment forum "Russia Calling"'.

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Oreshkin noted that there were numerous investment projects in the field of new technologies, particularly, in blockchain technology, and increased attention to the industry was already being discussed at the international level.

The legal status of cryptocurrency, mining and crowdfunding has not been defined in Russia so far. In March, three bills aimed at closing this legislative gap were submitted to Russia's lower house. The draft law "On Digital Financial Assets" directly established that digital financial assets are not a legal means of payment in Russia.