Opposed to Bitcoin Payments, Bank of Russia Says State Should Not Stimulate Spread of Cryptocurrencies – Regulation Bitcoin News

Cryptocurrencies are anonymous and the government shouldn’t encourage their spread, the head of Bank of Russia has insisted. This regulator continues to oppose the legalization in Russian Federation of Bitcoin and other digital currencies as a payment option.

Bank of Russia reiterates its negative attitude towards Cryptocurrencies and Legalization of Bitcoin

A “responsible state” should not stimulate the proliferation of cryptocurrencies, according to Elvira Nabiullina, chair of the Central Bank of Russia (CBR). Declaring the statement was made by the Head of the Monetary Authority in the State Duma (lower house) of Russian Parliament.

The high-ranking official emphasized that the bank has “an extremely negative attitude towards cryptocurrencies” which she described as “private currencies pretending to be money.” Quoted by the Tass news agency, Nabiullina elaborated:

These crypto-currencies are anonymous. No one is responsible. A responsible state, according to our view, should not promote their spread or squeeze them out from payments.

The governor also acknowledged that people should be offered an alternative. Bank of Russia strives to make this happen through its various projects. “I have already spoken about the digital ruble – in our opinion, this should develop,” Elvira Nabiullina added.

Opposed to Bitcoin Payments, Bank of Russia Says State Should Not Stimulate Cryptocurrencies

The head of Russia’s monetary policy regulator remarked that the CBR is not against digital currencies in general, provided they are not used for “shadow operations.” Nabiullina pointed out, however, that Bank of Russia continues to oppose the legalization of bitcoin as a payment instrument in the country.

The Russian central bank is intensifying its efforts to develop a digital ruble, a national fiat currency, in response to the growing popularity of cryptocurrency and electronic payments. The regulator established a pilot group for digital rubles with more than a dozen financial institutions this year. The prototype for the CBDC platform is expected to be released in December. Trials are scheduled to begin in January.

Nabiullina told international bank forum participants that Russia has a need for the digital ruble because it can facilitate non-cash, cheap payments. According to the country’s latest financial market development strategy, the state-issued digital currency should prevent citizens from using ‘money surrogates,’ a term used by officials in Moscow to describe cryptocurrencies.

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Bank of Russia. Bitcoin Payments. CBR. Central Bank. Elvira Nabiullina. Elvira Nabiullina. Government. Governor. Head, Legalization. Nabiullina. Payment instrument. Regulation. Russia.

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