The Russian Central Bank Reiterates Its Opposition to Cryptocurrencies
As per Elvira Nabiullina, head of the Central Bank of Russia, a responsible state should not encourage the spread of digital currencies (CBR). The statement was delivered in the Russian parliament’s lower chamber, the State Duma, by the head of the monetary authority.
According to the high-ranking official, the bank has “an incredibly negative attitude toward digital currencies,” which she defined as “private currencies pretending to be money,” according to the high-ranking official. However, according to the Tass media outlet, Nabiullina clarified that these digital currencies are anonymous. No one is accountable for them. A responsible state should not encourage their development and force them out of payments.
Simultaneously, the governor admitted that people needed an alternative. With its efforts, the Bank of Russia is attempting to achieve this. Elvira Nabiullina believes the digital ruble will grow.
The CBR is not opposed to digital currencies in general, as long as they are not used for “shadow operations,” according to the head of Russia’s monetary policy authority. Nevertheless, Nabiullina said that the Bank of Russia remains to oppose the legality of bitcoin as a payment method in Russia.
The Russian central bank has increased its attempts to build a digital version of the ruble in response to the increasing popularity of cryptocurrencies and the considerable growth in electronic payments. The regulator established a digital ruble trial group with more than a dozen financial companies this year. A version of the CBDC platform will be released in December, with trials set to begin in January.
The Russians need the digital ruble because it would enable inexpensive and reliable non-cash payments, according to Nabiullina, who recently spoke at an international banking convention. In addition, the state-issued digital currency should discourage residents from using money surrogates, a word used by authorities in Moscow to define cryptocurrencies, as per the nation’s newest financial sector policy.