Wednesday, November 30

Central Bank of Russia analyzes banning investments in cryptocurrencies

Russia argued for years against cryptocurrencies, saying they could be used in money laundering or to finance terrorism. It finally granted them legal status in 2020, but prohibited their use as a means of payment.

The central bank is now in talks with market players and experts about a possible ban. If approved by lawmakers, it could apply to new purchases of crypto assets, but not past operations, one of the sources said, who requested anonymity due to the sensitivity of the matter.

Another source said that the central bank’s current position was a “total rejection” of all cryptocurrencies.

In response to Reuters request for comment, the central bank said it was preparing an advisory report to express its position on the issue. He did not comment on details.

The annual volume of cryptocurrency transactions carried out by Russians is approximately $ 5 billion, indicated the central bank.

The first deputy governor of the Central Bank, Ksenia Yudaeva, said this month that the growing popularity of cryptocurrencies was generating concerns about risks to financial stability, highlighting that its use reduced the efficiency of monetary policies.

Meanwhile, the Bank of Russia plans to issue its own digital ruble, joining the global trend of developing digital currencies to modernize financial systems, speed up payments and counter a potential threat from other cryptocurrencies.