Bank of Russia Says Stablecoins Are Not Suitable for Settlements – Finance Bitcoin News

Russia’s Central Bank has criticized stablecoins as being too risky and unfit for payment. Reacting to statements made by top officials in the finance ministry, who claimed that their department might support Russian stabilitycoin development, the monetary authority said so.

Russia’s Central Bank Voices Opposition to Stablecoins

Contrary to the Ministry of Finance (MoF), the Central Bank of Russia believes that stabilizecoins should not be used as settlements. Because the assets that underlie private stablecoins do not belong, the risks associated with issuance or use are high according to the monetary authority. Bits.media shared the following:

The collateral assets are not insured against redemption, nor is the stability of the stablecoin.

The regulator commented on a recent statement by the head of the finance ministry’s Financial Policy Department Ivan Chebeskov, who vowed Minfin’s support for the development of stablecoins in Russia. When it comes to digital currency regulation, the minister is on the side with Russian businesses.

“If there is a need for companies and investors to pay or invest in a new way, if they need such a tool because it reduces costs, works better than previous instruments, and if the risks associated with it can be limited, then we will always support such initiatives,” Chebeskov remarked at the Russian Creative Week forum.

During “The Impact of Web3 – New Era of Internet of Trust?” panel discussion, the founder of Voronkov Ventures, Andrey Voronkov, noted that right now there are no blockchain-based, Russian ruble-pegged stablecoins. He believes they should be made as stablecoins tied to the dollar will strengthen U.S. fiat currencies. Chebeskov did not predict the date when a stablecoin tied to the ruble would be released.

VEB.RF experts stated in June that the creation of a stablecoin to be used for international settlements was a way to lessen the Western sanctions. The suggestion came after an earlier statement made by Vladimir Gutenev of the State Duma Committee on Industry and Trade that Russia could allow the use gold-backed stabilizecoins.

Bank of Russia is currently working on a digital version of its national fiat currency. According to reports, Olga Skorobogatova, the first Deputy Governor of Russia has stated that the CBR was ready to conduct extensive trials with the digital ruble in both domestic and foreign trade transactions. Amid expanding financial restrictions, imposed over Moscow’s military intervention in Ukraine, the Russian central bank has stepped up efforts to test and launch its CBDC.

What do you think Russia is going to do? Will it legalize stablecoins, and issue one based on the ruble. Please share your thoughts in the comment section.

Lubomir Tatsev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.