A high ranking member of Russia’s parliament suggested that Russia could legalize crypto mining, and stablecoins supported by gold under government supervision. This statement follows a proposal by Bank of Russia to ban cryptocurrency mining and trading.
Russia can legalize mining and some stablecoins, according to Duma deputy insists
As cryptocurrencies carry risk for investors unqualified, they should not be freely circulated. But, Russia might allow gold-backed stablecoins and mining of cryptocurrencies to be done under state control, Vladimir Gutenev, Chairman of State Duma Committee on Industry and Trade said to the RIA Novosti news Agency.
The Central Bank of Russia published on Thursday a consultation paper that presented the central bank’s comprehensive views regarding cryptocurrencies. According to the monetary authority, coin transactions through Russia’s financial system and crypto investment, trading, and mining within the country would be prohibited. The bank launched the pilot phase for its digital ruble initiative.
Gutenev agrees that cryptocurrencies must be stopped, although Russia could still use a stablecoin, which would be denominated as gold, and held under state supervision. Private investors as well as companies would find such a product appealing. According to the Prime business news portal, it could also be used as a savings tool.
According to the parliamentarian, the stablecoin, which is gold-backed, could look similar to a ruble. Russia can use it to bypass sanctions and to avoid the containment policy against Russia. This coin could also be used for regular, open and transparent economic relations between countries.
Gutenev said that he discussed this idea with Elvira Nabinullina, CBR governor. Head of the Industry and Trade Committee believes that gold, as an asset and not a reserve currency like the U.S. dollars or the euro is very undervalued.
The Ministry of Foreign Affairs stated that Russia might consider replacing its greenback partially in currency reserves, trade settlements, and the exchange rate with foreign currencies. It may also be open to the possibility of acquiring digital assets. Amid expanding U.S. sanctions, Moscow is putting an emphasis on “dedollarization,” Deputy Foreign Minister Alexander Pankin stated in an interview with Interfax.
Commenting on Bank of Russia’s call for a ban on crypto mining, Vladimir Gutenev said he thinks that cryptocurrency farms can be allowed to operate legally if their activities are under strict control of the state. If their operations are transparently operated and pay all taxes, miners may take advantage of Russia’s abundant energy and favorable climate conditions.
A working group at the State Duma, the lower house of parliament, is now preparing proposals to fill the regulatory gaps in the Russian crypto space remaining after the adoption of the law “On Digital Financial Assets.” Its members are expected to address the outstanding issues in several areas, including the legal status of cryptocurrencies, coin trading, and mining. Media reports have revealed that not all government institutions share Bank of Russia’s hardline position on the matter.
What do you think Russia is likely to allow the mining of cryptocurrency and approve stablecoins? Comment below to share your thoughts.
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