There will be no Free Crypto Investments in Russia
2022.12.16 10:46
There will be no Free Crypto Investments in Russia
Budrigannews.com – According to governor Elvira Nabiullina, the Russian central bank is prepared to consider allowing cryptocurrency use within the country, but only as part of a legal experiment.
Nabiullina stated at a Bank of Russia press conference on December 16 that “it’s possible to consider transactions through an authorized organization in the country as part of an experimental legal regime, but that would require a relevant law.”
Nabiullina emphasized that the only objection the Bank of Russia has ever had has been that cryptocurrency cannot be used as a payment instrument. She went on to say that because the cryptocurrency market is so volatile, the central bank is also concerned about protecting investors.
While Russia officially doesn’t preclude its kin from putting resources into crypto, the Bank of Russia trusts that the mass reception of crypto would definitely prompt its utilization as an installment strategy, as indicated by Bank of Russia representative lead representative Alexey Zabotkin. He declared:
“If you allow free circulation of cryptocurrency as an investment tool within the country, then inevitably, with the expansion of its ownership, it will become more widely used as a means of payment. It will be impossible to prevent this.”
As a result, Zabotkin emphasized, if Russia’s experimental regime is implemented, it will be used “only to support foreign trade” to encourage cryptocurrency use within the country.
The most recent information sheds some light on the factors that have led the Russian central bank to oppose the use of cryptocurrencies as investment tools in the country.
In 2020, the “On Digital Financial Assets” major crypto law in Russia made it illegal to use cryptocurrencies like Bitcoin (BTC) for payment. Although local cryptocurrency exchanges have remained unregulated, the law did not prohibit Russians from investing in cryptocurrencies.
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While not able to permit Russian individuals utilize decentralized finance instruments like Bitcoin locally, the Russian government itself would rather not pass up a great opportunity the advantages of decentralization on a worldwide scale. At the end of November, Russian President Vladimir Putin called for a blockchain-based settlement network and criticized the global monopoly on financial payment systems.
