Russian central bank calls for complete ban on cryptocurrencies
Upping its hostile regulatory ante against cryptocurrency trading and mining in Russia, the country's central bank today called for a blanket ban on cryptocurrencies, citing them as "volatile and widely used in illegal activities", and a threat to the country's financial stability, citizens’ wellbeing and the sovereignty of its monetary policy.
The report titled "Cryptocurrencies: trends, risks, measures" observed that cryptocurrencies "offer an outlet for people to take their money out of the national economy, thereby undermining it and making the regulators job of maintaining optimal monetary policies harder."
This comes weeks after the Central Bank of Russia announced its plans to collect information from commercial banks with regards to certain private money transfers, including details of clients who traded in cryptocurrency both in the country and abroad.
While the country had given legal status to cryptos in 2020, Russia has already outlawed accepting cryptocurrency as a means of payment in exchange for goods or services. However, the latest report focused on additional penalties for those flouting this norm.
Reportedly, the bank is also in the works to introduce its own digital currency (CBDC) or the digital ruble, which it believes is the future of banking in the country, satiating the citizens' need for quick, efficient and cheap payment options.
The country also aims to purge its financial infrastructure of cryptocurrency. The report recommended that in addition to the continuing ban on Russian mutual funds when it comes to investing in cryptocurrency, the country's institutional investors should also not invest in crypto, and neither should the country's financial organizations hold crypto as a part of their
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