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Bank of Russia opposes Ivan Chebeskov by denying private stablecoins in the country

  • News
  • July 12, 2022
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In a new event of the long-lasting battle between the Central Bank of Russia (CBR) and the country’s Ministry of Finance, representatives of the earlier have disapproved of the latter’s idea of supporting the stablecoins, which some private investors have sought to launch in the country. Russia’s central bank sees digital rubble as the only technological payment option to support. 

According to local media, an anonymous representative of the central bank terminated talk of Russia-based stablecoins, started last week by the Ministry of Finance’s director of financial policy department Ivan Chebeskov.

Back then, Chebeskov spoke about his ministry’s support for creating stablecoins tied to assets like “the ruble, gold, oil or grain”. He claimed it was “the right path for developing new technology” and urged private companies to try this kind of economic device if they find it necessary.

The CBR speaker added that private stablecoins “are characterized by higher risks,” because the pool of primary assets doesn’t belong to the issuer. They also specified that there is no guarantee of redemption at par by the issuer and the price of stablecoin isn’t really stable.

In a line with the old-style CBR message, the bank’s delegate noted that the ruble remains the only legal payment method in the country, and stated their confidence in the digital ruble, “combining all the advantages of digital payments and the reliability of national currency.” As local industry experts sometimes highlight, the central bank digital currency project lies at the heart of the CBR’s doubt towards all the private cryptocurrencies.

On June 29, the head of the CBR’s department of financial technologies, Kirill Pronin, approved the possibility of crypto mining legalization under certain conditions, namely the export of all the mined assets to foreign exchanges. The Ministry of Finance’s Ivan Chebeskov however didn’t miss a chance to disagree, noting the current geopolitical challenges for Russian miners who want to sell their crypto abroad.

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