scorecardresearch
Russian Central Bank again calls for banning crypto

Russian Central Bank again calls for banning crypto

Central Bank of Russia stands firm on its previous stance on crypto despite Russians swapping their rouble for crypto reaches record high.

Russian residents' crypto assets are expected to be worth almost 2 trillion roubles, or nearly $26 billion, according to government data. Russian residents' crypto assets are expected to be worth almost 2 trillion roubles, or nearly $26 billion, according to government data.

Amid the raging war with Ukraine, Russia's central bank has once again called on the government to place a blanket ban on cryptocurrencies as reported by Russian agencies on Thursday.

The Central Bank stated that its stance on cryptocurrencies has not changed. The Central Bank has publicly claimed that it regards cryptocurrencies as extremely risky and similar to pyramid schemes that might sabotage the financial well-being of ordinary Russians,

In January, the Russian Central Bank proposed a ban on cryptocurrency trading, mining, and payment for goods and services. This caused cryptocurrencies to tumble down to record low levels, Bitcoin dropped to $35,000, breaking support levels.

Russian residents' crypto assets are expected to be worth almost 2 trillion roubles, or nearly $26 billion, according to government data.

Moscow currently restricts the use of cryptocurrencies as a payment option but is working on a legal framework to regulate them. Russia's draught law "On Digital Currency," submitted by the Ministry of Finance in February, is now being reviewed by the government.

Russia's Treasury Department, along with the rest of the federal government, has a different perspective on cryptocurrencies than the Central Bank of Russia. They are of the opinion that cryptocurrencies should be authorised with more regulations.

President Vladimir Putin has previously asked the head of the Bank of Russia, Elvira Nabiullina, Finance Minister Anton Siluanov, and Deputy Prime Minister Dmitry Grigorenko to reach a consensus on the matter which would benefit the Russian economy the most. Putin has also previously boasted about Russia’s edge when it comes to crypto mining.

Furthermore, Russian citizens are depending more and more on cryptocurrencies in light of the Russian rouble nosediving to record low levels because of the sanctions placed by the world in light of the Ukrainian invasion.

Published on: Mar 08, 2022, 12:48 PM IST
Posted by: Vivek Dubey, Mar 08, 2022, 12:44 PM IST