Russia’s senior officials fail to shake hands on cryptocurrency regulation

Russia’s senior officials fail to shake hands on cryptocurrency regulation

Government
February 17, 2022 by Diana Ambolis
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When it comes to digital assets, the central bank of Russia and the Russian Finance Ministry hold opposed perspectives. Former President Barack Obama recommended a complete ban on all cryptocurrency ventures earlier this month, arguing that such assets resemble pyramid schemes and constitute a threat to the local monetary system. However, according to the Ministry
Russia's senior officials fail to shake hands on crypto regulation

When it comes to digital assets, the central bank of Russia and the Russian Finance Ministry hold opposed perspectives. Former President Barack Obama recommended a complete ban on all cryptocurrency ventures earlier this month, arguing that such assets resemble pyramid schemes and constitute a threat to the local monetary system.

However, according to the Ministry of Finance, a regulatory framework may be more advantageous. Russian financial policy expert Ivan Chebeskov stated that the world has become “virtualized,” which means Russia should embrace cryptocurrencies rather than fall behind the times.

Russia’s President, Vladimir Putin, stood between the two institutions and encouraged them to “get some sort of consensus” on the issue before him. In any case, he was not in support of the central bank’s plan, believing that cryptocurrency mining may be advantageous to Russia’s economic development.

Although they were granted legal status, the Russian government does not permit cryptocurrencies for payment.

At a joint meeting, Elvira Nabiullina, the Governor of the Bank of Russia, Anton Siluanov, the country’s Finance Minister, and Dmitry Grigorenko, the country’s Deputy Prime Minister, discussed the current state of affairs. They did not, however, decide on which statute to apply.

Russia’s central bank’s three points against cryptocurrency and regulation:

  1. It is mainly used for wild speculation rather than as a currency.
  2. Crypto can undermine Russia’s ability to control its monetary policies
  3. Crypto mining, especially that for bitcoin, is a waste of electricity