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- Russia’s first crypto-specific act bans the use of crypto assets in settlements. Next target, stablecoins.
- The Central Bank plans to introduce digital ruble by 2022, and its prototype to be released and tested by Autumn 2021.
- Anatoly Aksakov thinks experts, economists, and bankers should assemble and discuss the stablecoin regulations.
Russia’s Central Bank is bent on becoming the nation’s digital economy center of gravity and is making developments to ascertain its forthcoming digital ruble gains market dominance. And to achieve that, its principal focus is to limit the use of stablecoins.
No Crypto-Asset, Presenting Digital Ruble
Recently Interfax, an independent Russian news agency, reported that at a banking-related meeting of the Russian Union of Industrialists and Entrepreneurs, Ivan Zimin, the head of the Central Bank of Russian Fed.’s financial technology department, discussed a proposed law enforced on January 1st this year. The Russian legislation is the nation’s first crypto-specific act that prohibits crypto assets in settlements. He hinted that it was just the first step, and their next target is limiting the use of stablecoins.
Zimin deems the process as essential to ensure the digital ruble. At large, the ruble becomes the official payment method, and all other monetary substitutes, like stablecoins and unsecured private cryptocurrencies, cease to be in trade. The following year, the Central Bank expects to have introduced and established the market for its digital token. Its prototype has been planned to release and be tested by 2021 Autumn.
Proposed Plan Faces Resistance
However, Zimin’s plans do not seem to have gained many approval votes. Many were left confused by his decisions and their expected enactment timeline.
The tech giant and banking leviathan, partially state-owned Sberbank, recently disclosed its plans to issue its stablecoin. Many others have announced to be following suit with their decided payment and settlement-focused projects.
The head of the State Duma’s financial markets committee, Anatoly Aksakov, expressed his puzzled sentiments on Zimin’s stablecoins remarks, especially concerning Sberbank’s project set debut before the Spring end. As per Aksakov, experts, economists, and bankers should assemble and discuss the stablecoin regulations.
Stablecoins Are Not “Digital Currencies”
The Moscow-based news media company even recited Aksakov, pointing out that the existing Russian legislation doesn’t categorize stablecoins under “digital currencies” like bitcoin, with no obligation or collateral. On the contrary, fiat-pegged tokens, like stablecoins, have collateral and are considered “digital financial assets” and thus legal.
Ruble: The Only Official Means of Payment
However, the Central Bank doesn’t share the same views. From Zimin’s perspective, stablecoins are just secured digital currency, as they too are issued by a firm and backed by some asset like money, gold, metal, or something else. And based on the aforementioned reasonings, neither cryptocurrency nor stablecoins can replace ruble as the official means of payment.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
