Cryptocurrencies can only be used for cross-border or international payments if they are not part of the domestic financial system of Russia, the chairman of the Bank of Russia said.
The head of the Russian Central Bank, Elvira Nabiullina, was the latest official to confirm that the country is enthusiastic about the idea of payments in cryptocurrency, but not domestically.
According to Nabiullina, cryptocurrencies can only be used for cross-border or international payments if they are not part of Russia’s domestic financial system.
The digital currency should not be used as a means of payment on platforms inside Russia, the head of the Bank of Russia said in an interview with the local RBC news agency. Because of this, the prices of cryptocurrencies are too unstable or volatile and therefore risky for retail investors, Nabiullina said, stating:
“Cryptocurrencies should not be traded on organized marketplaces as these assets are too volatile and too risky for potential investors.”
Nabiullina went on to say that digital assets must comply with all requirements and guidelines created to protect investors. Therefore, all assets listed on the stock exchange must have a prospectus, a responsible person and comply with disclosure requirements.
Earlier, the governor urged the government to focus on facilitating the development of digital asset projects, which will be issued by the responsible person in April. She contrasted this vision with private cryptocurrencies such as bitcoin (BTC), which have no responsible party and the creator of bitcoin has not been identified at all.
Nabiullina’s recent remarks once again confirm that Russia may be preparing to use cryptocurrencies in international trade. In May, the first deputy chairman of the Central Bank of Russia, Ksenia Yudaeva, announced that the Bank of Russia was ready to allow the use of cryptocurrency for international payments.
In October 2021, Russian President Vladimir Putin stated that it was “still premature” to use cryptocurrencies to settle energy transactions such as oil.
On the subject: Russian bank Sberbank closes the first deal with digital currency
While the Russian government is showing increasing interest in cross-border payments in crypto, it is also doing its best to prevent Russians from using crypto as a means of payment in the country. Following the official ban on cryptocurrency payments under the grand Russian cryptocurrency law in January 2021, local lawmakers passed another bill on first reading on Tuesday to ban the use of digital financial assets.