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Bank of Russia sees no place for crypto in the financial market and completes digital ruble prototype – Finance – Crypto News

Before presenting its comprehensive take on crypto regulations, the Central Bank of Russia hinted that it sees no place for cryptocurrencies in the country’s financial market. The monetary authority also announced that the prototype of the platform for its own digital currency has already been completed.

Bank of Russia publishes report on cryptocurrency

The Central Bank of Russia (CBR) is known to maintain a tough stance on the issue of legalizing cryptocurrencies. The regulator intends to use legislative changes to push for the adoption of rules for the movement of digital assets, Deputy Chairman Vladimir Chistyukhin told Russian media in a comment.

“I think that we will solve the problem by changing the law. There will be a more precise definition of how cryptocurrencies can be traded, ”Chistyukhin told reporters in the State Duma, the lower house of parliament.

The official noted that Russian citizens and businesses have the right to buy and hold cryptocurrency, but not through the country’s financial infrastructure and intermediaries. He made the comment in response to a question on whether the CBR is in favor of banning transfers from accounts of Russian citizens to crypto exchanges.

ONE Working group on crypto regulation is due to hold its first meeting in the Duma this month, starting with a review of a CBR report, chairman of the parliamentary financial markets committee, Anatoly Aksakov, announced in November. Commenting on the content of the upcoming report, Chistyukhin said:

Let me give you a hint – we don’t see any place for cryptocurrencies in the Russian financial market.

His statement comes from sources cited by Reuters specified that the regulator is considering banning Russian crypto purchases. Then, during a press conference on Friday, CBR Chair Elvira Nabiullina reiterated the bank’s skepticism about cryptocurrencies and persisted that Russia’s financial system should not be used to facilitate crypto transactions.

Russia’s central bank ready with digital ruble prototype

While clarifying its stance on cryptocurrencies, the CBR was working on developing a digital currency for the Russian Central Bank (CBDC). The prototype of the digital ruble platform is now ready, the First Vice-Chair Olga Skorobogatova told journalists this week. Quoted by Interfax news agency, she added that the agency plans to start pilot operations with the currency after the January holidays.

A dozen Russian banks will participate in the first of several phases of the trials, which will last through 2022. In early December, the Bank of Russia announced that it would invite credit organizations and conduct consumer-to-consumer deals in the first phase. In the second phase, in which transactions between private individuals and companies are tested, the federal treasury will join together with the financial intermediaries.

CBR started thinking about a digital version of the Russian ruble three years ago and decided last year to look into the possibility of issuing the CBDC. A consultation paper was published in October 2020 and the regulator collected feedback from financial sector actors. In April 2021, the bank released a concept for the digital ruble that outlines its main architecture. In addition to Russian citizens, the bank is also planning enable Open non-resident ruble digital wallets, use the currency and convert it to foreign fiat.

Do you think the Bank of Russia will ban crypto-related transactions through the Russian financial system? Let us know in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy journalist from Eastern Europe who likes Hitchens’ quote: “Being a writer is what I am and not what I do.” In addition to crypto, blockchain and fintech, international politics and economics are two more Sources of inspiration.

Photo credits: Shutterstock, Pixabay, Wiki Commons

Source: Crypto News Austria

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