The Bank of Russia is taking strong action against digital assets and their illegal use cases. They proposed the introduction of new laws and responsibilities based on which a person will be held accountable in the case of specific use cases. Also note that reports suggest their goal is to percentage of decentralized currency circulation. It also means that they may restrict certain Bitcoin use cases in the future.
The Bank of Russia on crypto
At present, not all crypto related activity in Russia is fully regulated. There is a law called “On Digital Financial Assets” which oversees and manages crypto to some extent. The fact that Bitcoin is not legal tender in Russia, the main question asked by banks is whether crypto should be allowed to make payments for goods and services. Their view of the same is negative and they don’t want it to happen. In fact, any form of money other than their official legal tender is prohibited to pay for goods and services.
It looks like Bank of Russia laws will be aimed at stopping crypto payments. In fact, that’s what they mean when they say “illegal circulation of digital financial assets”. They want to promote digitization but only want one legal tender in the country. All the things that the Bank is planning have been put under a document which has been approved by its Board of Directors and will now be forwarded to other authorities for approval.
CBDC of the Bank of Russia
They are also working on their own central bank digital currency. The authorities stress that the introduction of a CBDC will require numerous legislative changes. In fact, they are preparing to amend 13 laws and codes to incorporate the idea of CBDC into their constitution. But there are also concerns. Many cite that the introduction of a CBDC could harm the banking sector in Russia. It will therefore be interesting to see how the authorities go about it. The President of the Bank of Russia said their CBDC will provide an alternative to crypto for making cheap and reliable payments.
What do you think of the Bank’s approach against the illegal use of digital assets? And do you think their CBDC will be able to compete strongly with other cryptocurrencies? Let us know in the comments below. Also, if you found our content informative, like it and share it with your friends.
Read also: Bank of England thinks CBDCs are the future of money.