According to a Russian news source, the Russian central bank fully supports a full ban on the use of crypto in the country, if such legislation ever comes up for discussion. The central bank does not believe that crypto can be legal tender in Russia, according to the news source.
What the Central Bank Thinks of Crypto
In the report, it is claimed that the central bank of Russia issued a statement in which it states that the Russia ruble is the only legal tender in the nation. Besides that, the central bank says that it believes cryptocurrencies carry a significant risk. It gave the example of the use of crypto for money laundering, terrorism financing, as well as price volatility of crypto assets. The central bank added that crypto could not be equated to fiat money. According to them, if Russian lawmakers ever decide to ban crypto payments in Russia, they would fully support such a move.
No Legal Clarity for the Crypto Sector
In Russia, the crypto industry does not have any legal clarity. One reason for this is that Russia might not want to give crypto any legitimacy by regulating it. However, crypto is also not outlawed in Russia. In fact, Russia is a major mining hub for cryptocurrencies such as Bitcoin. This is because has some of the cheapest electricity in the world.
This is not the first time that Russia’s central bank has expressed negative sentiment when it comes to cryptocurrencies. However, the head of the central bank has expressed some interest in the idea of creating a central-bank issued digital currency. Despite this, no concrete steps have been announced concerning these sentiments.
China, Russia’s largest neighbor, has taken a different perspective when it comes to a central bank digital currency. The nation’s central bank is in the advanced stages of launching a national digital currency. It believes that this digital currency could help to improve access to financial services in the rural areas of the nation. All indications are that China’s central bank digital currency is going to launch in 2020. It is also worth noting that China still allows the mining of crypto in the nation. Today, China is one of the largest sources of Bitcoin mining in the world, an issue that has raised concerns amongst some legislators in the west.
Crypto Regulation Around the World
Thus far, crypto regulation has not been cohesive, while some nations such as Japan have embraced the sector; others have totally rejected the idea of crypto. For instance, China has already banned all crypto exchanges from operating in the nation. It has continued to take various measures against the sector, including the recent ban of the Weibo accounts of Binance and Tron.
One nation that seems to be warning up to crypto is Germany. The nation recently passed crypto-friendly laws that are meant to help the crypto sector thrive. These new laws allow German banks to handle crypto, which could be crucial to ensuring the mass adoption of crypto in the nation.
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