Bank of Russia Opposed to Bitcoin Payments and Against the Far Reach of Cryptocurrencies

Usha  |  Nov 21, 2021

Cryptocurrencies are anonymous, and the government should not promote their use, according to the head of the Bank of Russia. The Russian Federation's regulator remains adamantly opposed to the legalization of bitcoin and other cryptocurrencies as a form of payment.

The Russian Central Bank Reiterates Its Opposition to Cryptocurrencies and the Legalization of Bitcoin

According to Elvira Nabiullina, chair of the Central Bank of Russia, a "responsible state" should not encourage the spread of cryptocurrencies (CBR). He stated this in the Russian parliament's lower chamber, the State Duma, by the head of the monetary authority.

According to the high-ranking official, the bank has "an extraordinarily hostile stance toward cryptocurrencies," which she described as "private currencies pretending to be money," according to the high-ranking official. Nabiullina elaborated, according to the Tass news agency:

 

These cryptocurrencies are anonymous; no one is accountable for them, and, in our opinion, a responsible state should not stimulate their spread and squeeze them out of payments.

At the same time, the governor admitted that people need an alternative. Through its efforts, the Bank of Russia is attempting to achieve this., Elvira Nabiullina continued,

"I've already mentioned the digital ruble - we believe it should grow," 

The CBR is not opposed to digital currencies in general, as long as they are not used for "shadow operations," according to the head of Russia's monetary policy authority. However, Nabiullina noted that the Bank of Russia continues to oppose the legality of bitcoin as a payment method in Russia.

Significant increase in electronic payments

The Russian central bank has increased its attempts to build a digital version of the national fiat, the ruble, in response to the rising popularity of cryptocurrencies and the considerable increase in electronic payments. The regulator established a digital ruble trial group with more than a dozen financial companies this year. In December, a prototype of the CBDC platform will be released, with trials set to begin in January.

The Russians require the digital ruble because it would enable cheap and reliable non-cash payments, according to Nabiullina, who recently spoke at an international banking convention.

According to the country's newest financial sector growth policy, the state-issued digital currency should discourage residents from using money surrogates,' a word used by officials in Moscow to describe cryptocurrencies.

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