Home
News
Highlights
- The Deputy governor at the Bank of Russia, Vladimir Chistyukhin, hinted that the Russian government does not seek room for private cryptocurrencies
- The statements come across as the Bank of Russia is inclined towards introducing its digital Rouble
- However, Russia recently watched the mining of cryptos grow across the country due to the mass exodus from China.
The frameworks & regulations of cryptocurrencies are still blurry & ambiguous around the world. While some welcome it with open arms, others are still hesitant towards it & figuring out the crux of the matter. Most central banks worldwide have also started experimenting with their own blockchain-based currencies, generally known as Central Bank Digital Currencies (CBDC).
Recently, A Russian news agency, TASS, reported that Bank of Russia’s Deputy Governor, Vladimir Chirstyukin, on Dec 20, hinted against private cryptocurrencies, implying that they may soon not be included in the prospectus of the Russian markets.
Furthermore, the governor further stated that Russia has voiced against cryptocurrencies, which could be used for money laundering or financing terrorism. In a recent event, Reuters pointed out sources stating that central bankers perceive growing crypto transactions as a risk to financial stability and advocated the complete rejection.
It was further noted that the Bank of Russia is currently drawing up plans to limit the use of such currencies while also working on its CBDC, the digital Ruble. The central bank aims for its cash to be completely swapped by its digital Ruble in 10-30 years time, while scheduling the pilot program for its commencement in the early days of January 2022.
The governor of the Bank of Russia, Elvira Nabiullina was also found stating sentiments on the similar lines where she mentioned, the bank cannot welcome investments & transactions in cryptocurrencies, while the citizens of Russia have transacted $5 Billion worth of cryptocurrencies past this year.
However the Russian central bank had previously seeked more time, saying that the country needs further adjustments into the regulation of cryptocurrencies citing the experiences of China & other similar countries.
In recent times, the country also gauged a surge in the mining of cryptocurrencies as a consequence to the blanket ban imposed by China. The lower house of Russian parliament or the state Duma recently proposed that the mining of cryptocurrencies should be encouraged and looked at as an entrepreneurial activity while also suggesting increased electricity costs on such businesses. Russia currently stands 3rd in Bitcoin mining while reporting a volume share of 11.23%. However, such statements have left haze in the markets as to concerns regarding the validity of cryptos in the country.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
