MOSCOW, July 11. /TASS/. Russia’s Central Bank considers private stablecoins (cryptocurrency backed by a traditional valuable asset, for example, gold, oil, etc.) marked by elevated risks, the press service of the regulator told TASS on Monday, adding that the Bank of Russia considers the digital ruble as a preferred alternative.
"The Russian ruble is the only legal payment means in Russia. The Bank of Russia considers digital ruble a preferred alternative to private stablecoins having all advantages of the digital payment means and the reliability of a full-fledged currency," the regulator’s press service noted.
The Bank of Russia also noted an elevated risk of private stablecoins. "We suggest private stablecoins are marked by elevated risks. The pool of assets they are based on are not held by the owner, redemption at par is not guaranteed. The price of stablecoins is virtually not stable," the regulator said.
Earlier, Director of the Russian Finance Ministry’s Department of Financial Policy Ivan Chebeskov said the ministry overall supported the possibility of circulation of stablecoins in Russia.
In January the Bank of Russia published a report "Cryptocurrencies: trends, risks, measures", in which the regulator proposed banning the issuance, mining and circulation of cryptocurrencies in Russia in order to reduce threats. The regulator noted that the status of the Russian ruble, which is not a reserve currency, does not allow Russia to apply a soft approach and ignore the increase in risks. The Bank of Russia proposed introducing a ban on the issuance or circulation of cryptocurrency in the country and establishing liability for its violation.
The concept of the Finance Ministry provides for the regulation of cryptocurrencies in Russia without their prohibition. The ministry believes that the complete lack of regulation of cryptocurrencies or their ban will lead to destabilization of the industry, an increase in the share of the shadow economy and an increase in fraud, and law enforcement agencies will not be able to effectively respond to crimes, which are committed by using such tools.
President Vladimir Putin called on the government and the Bank of Russia to come to a consensus on the regulation of cryptocurrencies and report on the results.
In February the Russian government approved the Concept of legislative regulation of digital currencies with the focus on protection of rights of ordinary investors. The turnover of such financial assets will be regulated by the state with strong obligations for all professional market participants and the focus on protection of rights of ordinary investors, the Cabinet's press service said. The regulatory goal of the Concept is to integrate the mechanism of digital currencies turnover with the financial system and ensure control over cash flows within the perimeter of credit institutions, the press service said.