According to information published by Reuters, two sources close to the Central Bank of Russia said that, due to risks to financial stability, the Bank is prone to ban investments in cryptocurrencies in the country.
The statement expresses that the government will not attempt to confiscate cryptocurrencies purchased in the past, but will limit future purchases. This ends up pausing the negotiations carried out openly, creating a new parallel market, impossible to be regulated and causing the price of cryptocurrencies to be far from the global quotation, most likely upwards.
Currently, the only two proposals from governments afraid of cryptocurrencies are banning them and creating their own digital currencies, the CBDCs. With this, it is clear that they did not understand the reason for searching for Bitcoin, after all, people want to have an asset that is not printed without brakes, causing loss of their purchasing power, as happens with state currencies.
Bitcoin, the terror of central banks
Russia’s Central Bank is not the only one worried about losing its monetary authority due to the popularization of cryptocurrencies. This week, the Central Bank of England was also distressed, citing the risks of cryptocurrencies.
As Bitcoin, and other cryptocurrencies, are apolitical assets and have no central authority, both in the development of their project and in their price, obtained from the free market, it is being increasingly adopted by people who do not trust monetary policies of governments.
On the other hand, obviously this is all that the Central Banks do not want, to lose control of a sector that is so important to everyone’s lives, that of money.
“The Central Bank is in talks with market participants and experts about a possible ban, which, if approved by lawmakers, could apply to new purchases of cryptoactives, but not to those purchased in the past”
The sentence above, exposed by Reuters, is a comment from an anonymous source close to BC Russia, showing the delicacy of the matter. After all, if Russia takes this position, it will be another country with the same mindset as China, which banned cryptocurrencies completely this year.
CBDCs are the last letter from governments
CBDCs — which stands for Central Bank Digital Currencies — are the latest bet by governments that, in trying to replicate the characteristics of public blockchains such as Bitcoin, think their citizens will forget about cryptocurrencies.
The problem is that these government coins go against cryptos by offering even less privacy to their users, as well as not eliminating their biggest problem, the rampant creation of more money, causing it to lose its purchasing power.
It is also worth noting that we already have digital solutions and services from several common banks, yet even they are already starting to adopt cryptocurrencies due to the high demand.
Finally, if Russia takes the same path as China, and bans the buying/selling of cryptocurrencies, this will be another indication of its socialist roots that do not offer any freedom of choice to its people.