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Bitcoin News Bank of Russia Says Stablecoins Are Not Suitable for Settlements – Finance Bitcoin News

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The Central Bank of Russia has spoken out against stablecoins, which are considered high-risk and unsuitable for payments. The currency regulator has reacted to a statement by a top official from the Ministry of Finance, who suggested that his ministry would support the development of Russian stablecoins.

The Central Bank of Russia speaks out against Stablecoins

Unlike the Ministry of Finance, the Central Bank of Russia (CBR) believes that stablecoins are not intended for payments, either domestic or foreign. The money regulator said that issuing and using private stablecoins is risky because the underlying asset does not belong to the owner. Quoted by crypto news site Bits.media, it explained in detail:

Therefore, redemption at the nominal price of assets in collateral is not guaranteed, and the price of a stablecoin is indeed volatile.

The regulator commented on a recent statement by the head of the Financial Policy Department of the Ministry of Finance Ivan Chebeskov, who has pledged to support Minfin for the development of stablecoins in Russia. The high representative emphasized that the ministry is on the side of Russian businesses, when it comes to the regulation of digital currencies.

“If companies and investors need to pay or invest in a new way, if they need such an instrument because it reduces costs, performs better than previous instruments, and if the risks involved it may be limited, we will always support such initiatives,” Chebeskov said at the Russian Innovation Week forum.

In “The Impact of Web3 – The New Era of the Internet of Trust?” In the panel discussion, Voronkov Ventures founder Andrey Voronkov noted that there are currently no Russian blockchain-based stablecoins, pegged to the Russian ruble. In his opinion, they should be created when the existence of dollar-linked stablecoins underpins the US fiat currency. Chebeskov chose not to predict when a stablecoin pegged to the ruble might be released.

In June, experts from the National Institute of Economic Development VEB.RF said minting a gold-backed stablecoin for international settlements would help ease pressure from Western sanctions. . Their proposal follows an earlier statement by the Chairman of the State Duma Committee on Industry and Trade Vladimir Gutenev, who told RIA Novosti in January that Russia could allow the use of gold backing. stablecoins.

Meanwhile, the Central Bank of Russia has been actively developing a digital version of the national fiat currency. First Deputy Governor Olga Skorobogatova was quoted as saying that the CBR is ready for full-scale trials of the digital ruble, both domestic and foreign commercial transactions. Amid expanding, financial restrictions imposed on Moscow’s military intervention in Ukraine, Russia’s central bank has ramped up efforts to test and launch CBDC.

Do you think Russia will legalize stablecoins and issue one pegged to the ruble? Share your expectations in the comments section below.

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Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who likes Hitchens’ quote: “Becoming a writer is in my nature, rather than what I do”. Besides cryptocurrency, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image credits: Shutterstock, Pixabay, Wiki Commons, Ultraskrip

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