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Representatives of the Central Bank of Russia (CBR) and the country’s Ministry of Finance have fought once again over the latter’s proposal to support the stablecoins that some private investors have tried to introduce in the nation.
Advantages and disadvantages
Ivan Chebeskov, head of the financial policy section of the Ministry of Finance, launched the discussion of Russia-based stablecoins last week, according to local media, but an unknown central bank representative reportedly denied it.
Ivan Chebeskov from the Ministry of Finance disagreed wholeheartedly, pointing out the geopolitical difficulties Russian miners are now facing when trying to sell their cryptocurrency overseas.
Chebeskov expressed support for stablecoins backed by assets like “the ruble, gold, oil, or grain” at the time.
He encouraged private enterprises to employ this kind of financial instrument if they believed it was necessary, referring to it as “the correct route for creating innovative technology.”
Private stablecoins “are characterized by higher risks,” according to the CBR speaker, because the pool of underlying assets doesn’t belong to the issuer. Furthermore, they stated that the stablecoin price is not stable and that the issuer does not guarantee redemption at fair.
In keeping with the standard CBR statement, the bank representative pointed out that the ruble is still the sole accepted form of payment in the nation and expressed their confidence in the digital ruble, which “combines all the benefits of digital payments and the stability of the national currency.
The central bank digital currency initiative is at the root of the CBR’s suspicion of all private cryptocurrencies, local industry specialists occasionally stress.
On June 29, Kirill Pronin, the director of the CBR’s department of financial technology, admitted that cryptocurrency mining may be made lawful under specific circumstances, including the transfer of all extracted assets to international exchanges.
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.
