Legalizing Crypto Could “Fundamentally” Weak It Down Russiafinancial system of the nation Central bank has warned.
according to media outlets informerThe bank’s financial stability director, Elizaveta Danilova, said that allowing crypto into the Russian financial system would bring “fundamental risks”.
The finance ministry wants to legalize crypto – and regulate the use of tokens in the country. Crypto currently has no legal status in the nation, and trading tokens is neither illegal nor regulated.
But Danilova warned ,Legalization” “could harm the well-being of citizens.” It could also compromise the stability of the financial system and “pave the way” for an influx of illegal activities, she said.
However, Danilova suggested that the Central Bank was not opposed to allowing the use of crypto in international settlements. The bank is yet to approve the legalization of crypto mining. But, crucially, the bank wants miners to exchange their coins on international trading platforms – and keep them out of the Russian economy.
Elvira Nabiullina, the long-serving governor of the Central Bank, recently said that she has not changed her mind about crypto.
She added that the bank had a “negative attitude towards the use of cryptocurrencies in the domestic market”. Nabiullina, A longtime crypto criticIt also said that it opposed the use of the token “in the inner settlements”.
What’s the Russian Central Bank’s Problem With Crypto?
the bank is currently Fast-tracking the development of the digital ruble – with a major public-private sector pilot starting on 1 April.
Meanwhile, domestic media outlets are reporting that more Russians than ever are using crypto as a payment tool – to circumvent international sanctions.
media outlet Izvestia Many Russians are reportedly using “semi-legal” crypto exchanges to move funds to “Europe” and “other parts of the world,” according to local experts.
Alexey Tarapovsky, founder of Andrida Financial Group, said:
“The popularity of using cryptocurrencies to pay for purchases abroad has grown.”
Tarapovsky explained that “often” Russians use the coin to “buy electronics, computer games, apps, and real estate.”
last month, Izvestia Binance also reported that more than 21% of crypto owners from Commonwealth of Independent States (CIS) countries – former Soviet bloc countries – said they use their tokens to pay for goods and services.
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