Bank of Russia Sees No Place for Crypto in Financial Market, Finalizes Digital Ruble Prototype – Finance Bitcoin News

In advance of presenting its comprehensive view on crypto regulations, the Central Bank of Russia has indicated that it sees no place for cryptocurrencies in the country’s financial market. Also, the monetary authority announced that its prototype platform for digital currencies is complete.

Bank of Russia Issues Report On Cryptocurrency

Although the Central Bank of Russia is known for being strict on the subject of legalizing crypto currencies, it has been preparing a detailed report. In comments made to Russian media, Vladimir Chistyukhin, the Deputy Chairman of CBR stated that the regulator plans to advocate for legislative changes to regulate digital asset circulation.

“I think that we will resolve the issue through amendments to the legislation. There will be a more precise definition of how cryptocurrencies can be traded,” Chistyukhin said speaking to reporters in the State Duma, the lower house of parliament.

The official noted that Russian citizens and businesses have the right to purchase and keep cryptocurrency, but not through the country’s financial infrastructure and intermediaries. The official made this comment in answer to the question whether the CBR supports banning crypto-exchange transfers from Russian accounts.

An working group on crypto regulation will meet at the Duma for the first time this month. The meeting will start with an examination of a CBR-report, as announced by Anatoly Ashakov in November, who is also the head of Parliament’s Financial Market Committee. Chistyukhin commented on the content of the report.

I’ll give you a hint — we don’t see a place for cryptocurrency in the Russian financial market.

According to Reuters, sources said that the regulator was considering banning Russian cryptocurrency purchases. Then, during a press conference on Friday, CBR Chair Elvira Nabiullina reiterated the bank’s skepticism towards cryptocurrencies and insisted that Russia’s financial system should not be used to facilitate crypto transactions.

Russia’s Central Bank Ready With Digital Ruble Prototype

The CBR clarified its position on cryptocurrency, but has also been developing a Russian central bank digital money (CBDC). This week, Olga Skorobogatova, the First Deputy Chair of CBR said that the prototype for the digital ruble platform was complete. Interfax quoted her as saying that after January holidays, the authority will begin piloting the currency.

Twelve Russian banks are expected to participate in the initial stage of trials, which will last through 2022. Bank of Russia announced that the bank will host credit agencies and conduct consumer-to–consumer activities during its first stage. The Federal Treasury and financial intermediaries will also join the second stage where transactions between private individuals or corporate entities will be examined.

CBR first considered a digital Russian ruble in 2013 and started exploring the possibility last year. The regulator released a consultation paper in October 2020. It received input from the financial sector. A digital ruble design was released by the bank in April 2021. The bank will allow Russian citizens to have digital ruble wallets and use it. They also plan to convert the money to fiat currency to non-residents.

Are you concerned that the Russian Bank of Russia might ban cryptocurrency-related transactions via its financial system? Comment below.

Lubomir Tassav

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.