The Russian Central Bank Against Bitcoin!

2 min reading

The Russian Central Bank presented its opinion about cryptocurrencies and, as it turns out, this opinion is not favorable. It comes down to making the ruble the only legal tender of that country.


Russian Central Bank's opinion

As local media reports, on the 29th of November, the Russian Central Bank expressed its opinion about Bitcoin and the opinion is not very flattering. The institution indicated that it would support the ban on using a currency of this kind as a form of transaction, if an appropriate legislative decision is taken. The bank focused on the fact that cryptocurrencies are assets with a very high investment risk. It is difficult to estimate how much a virtual coin might gain or lose when its market is so volatile.

The ruble is the only legal tender in the Russian Federation. We think that cryptocurrencies involve a significant risk. For instance: allowing money laundering, terrorist financing and being exposed to sharp exchange rate fluctuations...

- reports the Russian Central Bank.

According to national regulatory organs, cryptocurrencies cannot be equated with money and cannot constitute a means of payment.


Russia and cryptocurrencies

The legal status of both cryptocurrencies and smart contracts in Russia has not been established yet. It is worth reminding that in 2018 the State Duma received three applications in favor of getting rid of this flaw and creating general regulations in the field of the digital economy. Up till now, only two of the applications have been adopted: amendments to the Civil Code regarding digital rights and the Act on obtaining funds through investment platforms.

Currently, there are no clear regulations regarding mining, or even ICO, though. The entire cryptocurrency industry is shrouded in uncertainty. The authorities of the country are trying to do something about this, of course. For example, in October, the Russian Ministry of Finance considered cryptocurrency classification according to three separate legal categories.

What is interesting is the fact, that in November the Russian Central Bank issued a statement in which it announced its reluctance to "monetary substitutes", noting, however, that it was carefully paying attention to digital currencies. It also added, of course, that it does not support any private coins.

It is also worth mentioning a rather bizarre information that came into light a few months ago and according to which the National Ministry of the Interior is striving to develop a law enabling the confiscation of cryptocurrencies and other virtual assets. Looking at it from a technical point of view, though, it is quite an absurd assumption...

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