Last Thursday, the Russian Central Bank published a report proposing a total ban on domestic cryptocurrency trading and mining. The report highlighted that the risk from cryptocurrencies are “much higher in emerging markets, including Russia.”
Governor of the Central Bank of Russia, Elvira Nabiullina in December 2021 said, “Investment in cryptocurrencies cannot be welcomed.” His views were contradicted by Russian Finance Minister Ivan Chebeskov. He emphasized that the cryptocurrency ban might leave the country behind in the global tech industry. Meanwhile, Putin said, “The central bank does not hinder our technological development and is making the necessary efforts to introduce the latest technologies in this area of activity.”
Despite these convictions, Putin acknowledged that the widespread use of cryptocurrencies was “associated with certain risks” given the “high volatility”. The Central Bank of Russia has been skeptical of cryptocurrencies for quite some time, but Putin’s opinion is somewhat unclear. In November 2021, he noted that cryptocurrencies are “backed by nothing and volatile”. In 2020, the central bank announced that it was exploring the possibility of a digital ruble with a prototype test scheduled for this month.
Read more:
- Russian tech and political leaders oppose the proposed cryptocurrency ban
- The Russian Central Bank is opposed to cryptocurrency use, trade, and mining
