Russia intends to ban cryptocurrency investment? News: The central bank's stance is biased towards a full boycott

Time:2021-12-26 Source: 916 views Trending Copy share

According to a report by Reuters, two financial market sources close to the Central Bank of Russia stated that the Central Bank of Russia believes that due to the soaring local cryptocurrency trading volume, it is worried that if this situation continues, it may endanger financial stability, so it intends to prohibit the public from investing in crypto. currency.

After the news came out, Bitcoin fell from around US$49,144 to US$48,656 yesterday (16) night, and reported US$47,824 at press time.

Russia has always been skeptical of cryptocurrencies, saying that such assets can be used for money laundering and terrorism. Last year, Russian President Vladimir Putin signed and passed the "Digital Financial Assets Act" (DFA). Although cryptocurrency is given the legal status of assets, it still prohibits people from using cryptocurrency as a means of payment and prohibits anonymous deposits in digital wallets.

The latest news pointed out that the Central Bank of Russia is currently negotiating with market participants and experts on the proposed cryptocurrency ban. A financial market source who requested anonymity said that if approved by the legislator, the ban may apply to newly purchased crypto assets, but not to the previously purchased crypto assets.

Russia's central bank takes a tough stand

Another source close to the Central Bank of Russia stated that the central bank’s current position favors a complete rejection of all cryptocurrencies.

In response to the "Reuters" request for comment, the Russian Central Bank did not disclose specific details, only that it is currently preparing a consultation report to express the central bank's position on this issue.

The Central Bank of Russia is currently planning to issue a digital ruble. In response to global trends, the Central Bank Digital Currency (CBDC) will be developed to modernize the financial system, speed up payments, and respond to potential threats from other cryptocurrencies.

IMF: There are practical obstacles to banning cryptocurrencies

The Central Bank of Russia stated that the annual cryptocurrency transaction volume of Russians is about 5 billion U.S. dollars. Ksenia Yudaeva, the first deputy governor of the Central Bank of Russia, said earlier this month that the growing popularity of cryptocurrencies has raised concerns about financial stability risks, adding that the use of cryptocurrencies reduces the efficiency of monetary policy. When talking about China's governance experience in cryptocurrency, she said that Russia needs to further adjust its regulatory policies on cryptocurrency.

However, Gita Gopinath, the chief economist of the International Monetary Fund (IMF), recently stated that many countries around the world have different regulatory attitudes towards the cryptocurrency industry, and each is trying different ways of contact. She frankly admitted that there are practical obstacles to banning cryptocurrencies. Because many cryptocurrency exchanges operate overseas and are not regulated, countries are called on to adopt a coordinated approach to regulation.

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