• Sat. May 21st, 2022

Russian Cenbank official: we don’t see a place for cryptocurrencies | Technology news

MOSCOW (Reuters) – Bank of Russia Deputy Governor Vladimir Chistyukhin on Monday hinted that private cryptocurrencies may soon be out of use in the country’s financial markets, TASS news agency reported.

The central bank is working on a report developing proposals to limit the use of such currencies in Russia, TASS said citing Chistyukhin.

As it plans to issue its own digital ruble, Russia has for years opposed private cryptocurrencies, saying they could be used for money laundering or to finance terrorism. But he recently stepped up his campaign.

“I’ll give you a hint: we don’t see a place for cryptocurrency in the Russian financial market,” TASS said quoting Chistyukhin.

Last week, Reuters quoted sources as saying the central bank sees risks to financial stability from the growing number of crypto transactions and is advocating a “complete rejection” of them, pushing bitcoin down.

Central bank governor Elvira Nabiullina has said his bank cannot accept investments in cryptocurrencies, which the Russians have used in annual transactions worth around $ 5 billion.

The Bank of Russia has previously said the country needs a further adjustment in cryptocurrency regulations, pointing to the experience of China and India.

In September, China stepped up its crackdown on cryptocurrencies with a blanket ban on all crypto transactions and “mining,” hitting bitcoin and other major coins and putting pressure on crypto-related stocks and the blockchain.

Meanwhile, the Bank of Russia aims to join the global trend of developing its own digital currency to help modernize financial systems, speed up payments, and counter any threats from other cryptocurrencies.

(Reporting by Elena Fabrichnaya; Writing by Andrey Ostroukh; Editing by Hugh Lawson)

Copyright 2021 Thomson Reuters.

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