Russian central bank: the function of stable coins should be restricted

The Russian central bank wishes to prepare its domestic market for the issuance of a digital ruble. Obviously, the authorities prepare to restrict, for instance, making use of stable coins in settlements.

Central bank vs. stablecoins

According to Interfax, Ivan Zimin, head of the monetary innovation department of the reserve bank, spoke at a banking-related conference arranged by the Russian Union of Industrialists and Business owners. He went over, to name a few, an act promoted on January 1 this year. This is the very first Russian law on cryptocurrencies. Remember that it has actually prohibited making use of cryptocurrencies in settlements. Zimin included that it was just “the initial step”. The new target will be stablecoins.

We will most likely take the second step by limiting the use of [stablecoins] to billing. It is very important. The digital ruble and the ruble in general [will be] official tender. Everything else – stablecoins, unsecured private cryptocurrencies, or other money substitutes – will not be allowed to be used as a means of payment, he said

The digital ruble and the stablecoins of business

Russia’s central bank intends to launch its digital currency next year, with a “model” prepared by the end of autumn 2021.

The case of stable coins may, nevertheless, excite inconsistent responses from the authorities and big business in the nation. Sberbank – at least partially owned by the Russian state – just recently exposed its own strategies to provide its stable coin.

Anatoly Aksakov, head of the State Duma’s monetary markets committee, stated he was “captivated” by Zimin’s discuss stablecoins, particularly because of the Sberbank task, which is because of begin prior to completion of spring.

“From my point of view, we require conversations with technical specialists, lenders and economic experts [on the policy of stablecoins],” he stated.

Interfax likewise estimated Aksakov, who described that existing Russian legislation does not categorize stablecoins as “digital currencies “. Rather, the law considers them to be “digital monetary possessions” and for that reason not an unlawful type of billing.

I would not call stablecoin a cryptocurrency if we referred to the definition contained in the Digital Financial Assets Act. There, a digital currency is defined as having no security whatsoever. On the other hand, stablecoin has collateral, so it cannot be digital , Aksakov said.

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.