A high-ranking representative of the Russian Ministry of Finance said that they are ready to support Russian transactions using stablecoins. Although the ministry acknowledges the potential for cryptocurrency to create a new system of financial transactions, it is not sure if this will work better than the existing one.
Russia’s Minfin Open to Legalizing Stablecoins if Business Needs It
The Ministry of Finance of the Russian Federation (Minfin) generally supports authorizing the circulation of stablecoins in the country, according to Ivan Chebeskov, director of the ministry’s Financial Policy Department. The top official made the statement during “The Influence of Web3 – New Era of the Internet of Trust?” panel at the Russian Creative Week.
Chebeskov noted that Minfin views the problem from the viewpoint of Russian entrepreneurs. “If there is a need for businesses, companies or investors to settle, invest in a new way, if they need such a tool, because it reduces costs, works better than previous tools, and if we can limit the risks associated with it, we will always support such initiatives,” he elaborated.
RBC Crypto quotes the government representative as saying, “But one cannot be certain that it will work better than existing financial systems.” “But one cannot be completely sure that it will be able to work better than the existing financial systems,” Chebeskov commented.
The Russian finance ministry has been a driving force behind efforts to legalize operations with cryptocurrencies in Russia, and earlier this year submitted a new bill “On Digital Currency,” designed to fill the regulatory gaps left by the law “On Digital Financial Assets.” The latter only partially regulated crypto matters when it went into force in January 2021.
However, the Central Bank of Russia (CBR) has been steadfast in its opposition to crypto transactions within the country. It also developed a digital ruble for the purpose and proposed an overall ban on cryptocurrency-related activities. It has recently softened its stance, Governor Elvira Nubullina saying that it could accept crypto payments of small scale in international settlements, despite the mounting Western sanctions against Russia.
Chebeskov’s statement comes despite the collapse of terrausd (UST), which caused a major market slump and loss of confidence in stablecoins. The situation in the crypto market was recently cited by the head of the parliamentary Financial Market Committee, Anatoly Aksakov, who warned that the upcoming legislation, which has undergone multiple revisions this year, will be “tough.”
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