VTB head Andrey Kostin said that cryptocurrencies, despite debates over regulation, will still play a significant role in the future of the financial system.
What Andrey Kostin Said
Andrey Kostin spoke at the session “Betting on Youth: What Can Business and Government Learn From Zoomers?” at the Eastern Economic Forum. Answering a question about digital assets, he noted that he has a positive attitude toward cryptocurrencies.
I have a good attitude toward ‘crypto.’ It is a separate story, a big one, of course. Of course, cryptocurrencies still have a future.
I have a good attitude toward ‘crypto.’ It is a separate story, a big one, of course. Of course, cryptocurrencies still have a future.
At the same time, the head of VTB emphasized that the issue is not only in the technology itself, but also in which digital currencies will develop. According to him, private non-governmental cryptocurrencies face expected resistance from central banks and financial authorities in various countries.
What Is Cryptocurrency in Simple Terms
Cryptocurrency is digital money that exists on the network and works without a traditional intermediary bank. Its key features are cryptographic protection, blockchain records, fast transfers between users, and a high dependence of price on market demand.
Simply put, blockchain is like a shared ledger: transactions are grouped into blocks, network participants verify them, and then the record becomes part of the chain. The public key cryptosystem helps confirm who controls the asset without revealing extra information about the owner.
Cryptocurrency is convenient for fast transfers and independent storage of money, but it requires discipline: a mistake in the address, a lost key, or a sharp price drop can be costly.
Why Regulators Are Wary
The main reasons for such caution are as follows:
- private digital money can complicate monetary policy control;
- some transactions may leave the traditional banking infrastructure;
- volatility, theft, and weak oversight create risks for financial stability.
Kostin explained this position by saying that governments have monetary policy, money supply indicators, rates, and other economic management tools. Against this backdrop, a parallel market that is not subject to traditional regulation becomes a serious challenge for financial authorities.
This is why the discussion around digital assets has long gone beyond interest in individual coins. Today, cryptocurrency is seen not only as an investment tool but also as a new form of settlement, where blockchain, cryptography, and the public key cryptosystem change the very logic of trust between participants.
The Crypto Market and Its Benchmarks
The market already has a wide range of digital assets. They are conventionally divided into coins, which have their own network, and tokens, which are issued on top of existing blockchain infrastructure.
You can quickly compare the main assets as follows:
- Bitcoin: type — coin; main purpose — store of value and transfers without a bank intermediary.
- Ethereum: type — coin; main purpose — infrastructure for digital applications and tokens.
- Litecoin: type — coin; main purpose — fast cryptocurrency transfers.
- Ripple (XRP): type — token; main purpose — settlements and transfers in payment infrastructure.
- Dogecoin: type — coin; main purpose — transfers and use within the community.
- Monero: type — coin; main purpose — private transfers.
The price of cryptocurrency is determined by supply and demand: the higher the buyer interest and the lower the available supply, the more the price can rise. Market capitalization shows the total size of an asset on the market and is usually calculated as the price of one coin or token multiplied by the number in circulation.
Stablecoins stand apart — cryptocurrencies that try to maintain a stable price, most often around 1 US dollar. Such dollar stablecoins include Tether (USDT), USD Coin (USDC), and Dai (DAI).
Bitcoin, created under the name Satoshi Nakamoto, has become a symbol of a new model of money. Its basic mechanism is based on the principle of proof of work, and the very idea of digital currency has become an alternative to traditional bank transactions and settlements in units such as the US dollar.
How Users Buy, Store, and Use Cryptocurrency
Cryptocurrency is bought on crypto exchanges, through exchangers, and p2p deals. It is stored on exchange accounts, in hot wallets for everyday operations, or in cold wallets if long-term protection is more important. Assets can be exchanged through an exchange, an exchange service, or directly with another user.
You can make money on cryptocurrency, but there is no guaranteed income. The main ways are long-term investment, trading, mining, staking, and participating in crypto projects. The risks are also significant: sharp price fluctuations, hacks, fraud, loss of access to the wallet, and regulatory uncertainty.
For security, people usually use complex passwords, two-factor authentication, cold storage, address verification before transfer, and careful storage of the seed phrase. The main difference from regular money is that cryptocurrency is usually not issued by the state, is not stored in a bank account but in blockchain infrastructure, and can change price significantly.
Cryptocurrency is used for transfers, investments, paying for goods and services where the seller accepts such payments, as well as for NFTs and other digital assets.
The market’s development has also affected related areas: NFTs, tokenized assets in accounting, digital payment systems, and new formats for storing value. For business and government, all this remains a challenging area where currency, money, and technology collide with the need for regulation.
The Eastern Economic Forum is held in Vladivostok from September 1 to 4, 2026. The discussion of the crypto market at such a venue shows that the topic of digital assets remains important not only for private investors but also for banks, regulators, and financial authorities, including the United States of America and other major economies.
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