Bank of Russia Rules Out Free Crypto Investment
The recent position by the Russian government affirmed the exclusive utilization of Bitcoin to support and boost foreign trade. In a recent statement, the Bank of Russia ruled out legitimizing BTC use in settling regular transactions.
Trial Legal Regime for Crypto Use
However, the country’s central bank restated its preparedness to permit crypto usage in a legal trial project. The statement gained support from the bank’s governor Elvira Nabiullina.
Nabiullina observed that authorizing cryptos utilization as an alternative to fiat currency in settling conventional transactions mandates enacting a relevant law. Nevertheless, her addresses during the December 16 conference emphasized that the trial legal regime would involve passing new laws to establish the appropriate authority.
Nabiullina’s address echoed a previous position adopted by the Bank of Russia to prohibit crypto utilization in settling payments. The central bank chief lamented that volatility in the crypto market necessitates intervention to safeguard investors’ digital wealth.
Prohibiting Cryptos as Alternative Investments
Despite the central bank’s concerns over its volatility, the deputy governor Alexey Zabotkin emphasized that it has not formally prohibited Russians from crypto investments. He admitted crypto utilization in settling payments, given the increased crypto adoption witnessed among Russians.
Zabotkin noted that allowing cryptos to circulate as alternative investments in Russia will translate to higher ownership rates. Gradually, the cryptos investment will spill over to settling payments. He noted that such eventuality is challenging to avoid.
The central bank’s executives stressed the need to restrict experimental crypto usage to support foreign trade.
The December 16 conference clarified the negative stance against cryptos utilization as investment channels exhibited by the Russian central bank.
Restrictive Russia’s Policy on Cryptos
In particular, Zabotkin cited the provisions of the 2020 Digital Financial Assets law that outlawed crypto law as necessary. He decried that despite the regulation prohibiting cryptos usage from fulfilling payment needs, it failed to deter the citizens’ investment in digital assets.
On the contrary, the legislation indicated local crypto firms offering exchanges would remain unregulated. The Bank of Russia replicated the position by barring crypto mining firms from selling digital assets to the Russians.
The recent announcement by the government revealed a departure from the prohibitive stance. The executive admitted the need to avoid excluding Russia from leaping benefits attributed to the global increment in the adoption of decentralization.
President Vladimir Putin condemned the removal of Russia from the global SWIFT, citing it as monopolizing financial payment systems. He utilized the late November address to support autonomy in global financials realizable through adopting blockchain-based payment networks.
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