It is quite amazing that the same cryptocurrency that many refused to accept, when it was introduced about ten years ago, has become a system that different companies, businesses, and even governments want to adopt. It goes to say that there is a lot of good about cryptocurrencies, and it is interesting to see the heightened interest in digital currency from people who frowned and scoffed at it before.
We are well aware of the fact that Russia is one country that has shown its skepticism about cryptocurrencies in times past, hence, it comes as a surprise for some that the country that was so tough on crypto, has suddenly become soft, and to the point where they are considering the possibility of launching a digital currency.
According to Elvira Nabiullina, the Chairwoman of Russia’s central bank, there are indications that the institution may introduce its own digital currency to the crypto community in the near future. While talking at a student conference, she further said that even if a project of that nature cannot just happen, other central banks in different parts of the world are at the drawing board and weighing in on the possibilities. Furthermore, Nabuillina said that the important part to the functionality of a digital currency from a central bank is that the technology utilized must facilitate continuity and reliability, and she said there must be some maturity about the technologies, including the ones used to propagate distributed ledgers.
One important question that needs an answer is whether the citizens of Russia are ready to go cashless and embrace digital currencies, and even Nabiullina said embracing digital currencies would be more convenient for the people, but asked if the society was prepared to refuse the use of cash. Furthermore, she said that while some countries are joining the cash-free trend, others still love dealing with physical money, and according to her, it is not just for reasons of fraud and money laundering, but because they value their anonymity and privacy.
Nabiullina closed the conference by advising central bank researchers to carry out comparisons between central bank digital currencies and other methods of payments and transactions.
With this latest development in Russia, especially since its coming from the central bank, it is indicative of the fact that Russia may have eased off on the reins a bit. In May, 2019, Nabiullina announced that the central bank was in the process of considering having a cryptocurrency whose value would be backed by gold, and would be used for international settlements. However, she also added that the use of fiat currency in the EEC was improving tremendously, and that they have good dynamics.
It may interest you to know that even the lower legislative house in Russia, the Duma, is also making plans to pass a cryptocurrency law. Whatever the case may be, moves are being made, and perhaps speculations will become reality in the near future. Perhaps we are much closer to the mainstream adoption of cryptocurrency than we thought.