Russian central bank governor Elvira Nabiullina is the latest official to confirm that the country is warming to the idea of cryptocurrency payments, but not domestic ones.
According to Nabiullina, cryptocurrencies can only be used in cross-border or international payments if they do not enter the Russian national financial system.
Digital currency should not be used as a means of payment on platforms inside Russia, Bank of Russia Governor says said in an interview with local news agency RBC. This is why cryptocurrency prices are too unstable or volatile, hence risky for retail investors, Nabiullina explained, stating:
“Cryptocurrencies should not be traded on organized markets because these assets are too volatile, too risky for potential investors.”
Nabiullina went on to say that digital assets must comply with all requirements and policies created to protect investors. Thus, all listed assets must have an issue prospectus and a responsible person as well as comply with information disclosure requirements.
The governor previously called on the government to focus on encouraging the development of digital asset projects that will be issued by a responsible person in April. She opposed such a view to private cryptocurrencies like Bitcoin (BTC), which have no responsible party, while the creator of Bitcoin has not been identified at all.
Nabiullina’s latest remarks provide further confirmation that Russia may be gearing up to start using cryptocurrencies for international trade. In May, the first deputy governor of the Russian central bank, Ksenia Yudaeva, affirmed that the Bank of Russia was ready to allow the use of cryptocurrency for international payments.
In October 2021, Russian President Vladimir Putin said it was “still premature” to use cryptocurrencies to settle trade in energy resources such as oil.
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While taking an increasing interest in international crypto payments, the Russian government has also done its best to prevent Russians from using crypto as a form of payment in the country. After formally banning crypto payments as part of Russia’s main crypto bill in January 2021, local lawmakers on Tuesday passed another bill banning the use of digital financial assets on first reading.