The Russian Central Bank (CBR) is looking at ways of incorporating blockchain tech and crypto assets into its domestic financial system.
The potential to mint all cryptocurrencies
A consultation issued on Monday by the CBR is titled “Digital Assets in Russian Federation”. The consultation was to evaluate the possibility of using digital assets in order to allow “friendly countries” to access the Russian domestic market, and also to recommend protections for investors among aims.
The consultation states that the CBR will continue to support more development in digital asset technology but will be looking carefully at the financial and cybersecurity risks for the consumer.
Anatoly Aksakov, Head of the Financial Market Committee for the State Duma has let it be known that the primary aim, included in the current legislative proposal, is the potential minting of all cryptocurrencies.
This goes along with recent announcements out of Russia as the government and its central bank look for ways of getting around the financial sanctions and restrictions imposed by many western nations.
In a CoinTelegraph article on the subject published on Tuesday, a message published in Russian by the CBR on Telegram was quoted as saying:
“Russia has created the necessary legal framework for the issuance and circulation of digital assets […] But so far the market is at the initial stage of its development […] and is many times inferior to the market of traditional financial instruments. Its further development requires improved regulation.”
Working on a CBDC
Still on the subject of digital assets, the CBR is also working on a central bank digital currency (CBDC) which it is planning to have in place for 2024 after a piloting phase in 2023.
The CBDC is a very different kettle of fish to cryptocurrency. While they both come under the heading of digital assets, cryptocurrencies are currently able to be transacted peer-to-peer without any government intervention (with the caveat that regulations are pending which could have far-reaching implications).
CBDCs are 100% government issued and controlled, and as such the central bank would have wide-ranging powers over citizens, including being able to control how citizens spend them, and being able to impose all kinds of restrictions.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
