Crypto can harm Russian economy – central bank
Legalizing crypto could “fundamentally” undermine Russia’s financial system, the nation’s central bank has warned.
According to the Informer media outlet, Elizaveta Danilova, the bank’s director of financial stability, said that allowing crypto into the Russian financial system would entail “fundamental risks.”
The Ministry of Finance wants to legalize crypto – and regulate the use of tokens in the country. Crypto currently has no legal status in the country, and trading in tokens is neither illegal nor regulated.
But Danilova warned against it “legalization” could “harm the well-being of citizens.” She said it could also compromise the stability of the financial system and “pave the way” for an influx of illegal activities.
However, Danilova indicated that the central bank was not opposed to allowing the use of crypto in international settlements. The bank could yet approve the legalization of crypto mining. But crucially, the bank wants miners to trade their coins on international trading platforms – and keep them out of the Russian economy.
The central bank’s longtime governor Elvira Nabiullina recently said she had not changed her mind about crypto.
She stated that the bank had a “negative attitude towards the use of cryptocurrency in the domestic market.” Nabiullina, a longtime crypto critic, also said she opposed the use of tokens “in internal settlements.”
What is the Russian central bank’s problem with crypto?
The bank is currently monitoring the development of the digital ruble – with a large pilot in the public-private sector starting on 1 April.
Meanwhile, domestic media reports that more Russians than ever are using crypto as a payment tool – in an attempt to circumvent international sanctions.
The media outlet Izvestia reported that according to local experts, many Russians have been using “semi-legal” crypto exchanges in “Europe” and “other parts of the world” to move funds around.
Alexey Tarapovsky, the founder of Anderida Financial Group, said:
“The popularity of using crypto to pay for purchases abroad has increased.”
Tarapovsky explained that Russians “most often” use tokens to “buy electronics, computer games, apps and real estate.”
Last month, Izvestia also reported, Binance revealed that more than 21% of crypto holders in the countries of the Commonwealth of Independent States (CIS) – former Soviet bloc nations – said they use their tokens to pay for goods and services.
