MOSCOW, July 10. /TASS/. The regulation of stablecoins needs closer examination, according to files released by the Bank of Russia.
"Approaches to future regulation require thorough and comprehensive study and discussion with concerned public authorities, market participants, the expert community," the regulator said.
Different views exist now in Russia concerning the nature of stablecoins, their classification, as well as legal frameworks that may be applied to them, the Central Bank noted. "In particular, among notable issues is a mechanism that will regulate the potential circulation of stablecoins in the Russian jurisdiction: the rules set for digital financial assets, other digital rules, digital currencies or other rules," the regulator said.
Speaking about stablecoins as a payment instrument, irrespective of whether application of separate or general regulation is concerned, it is necessary to take into account the fact that stablecoins are not to be used as a universal payment instrument like the national currency, and the use of stablecoins as a payment instrument between Russian citizens is unacceptable. In Russia the only payment instrument is the national currency, the Russian ruble, the Central Bank stressed.
"That said, stablecoins are not acknowledged as a legal payment instrument, their use in domestic payments is connected with major risks for price and financial stability. For this reason oftentimes in world practice, including in Russia, the use of stablecoins as a domestic payment instrument is unacceptable," the regulator added.
Regulation of stablecoins
With Russia moving more and more to digitizing payments and settlements, the development of SBP (Faster Payments System) services, the testing and planned launch of the digital ruble, the issue of the possible introduction of regulations for stablecoins similar to that of digital cash is not under consideration, the Bank of Russia said. Meanwhile, the use of stablecoins, same as other private digital assets, may have certain advantages over traditional payment services in settlements with risks related to them persisting.
Some would like to see stablecoins be classified as an independent entity with special rules regulating their circulation, the regulator noted, adding however that so far from the viewpoint of international experience such a position is not widespread, and the position close to the approach that is widely-accepted internationally, more likely prevails. This approach suggests the use of existing more general legal frameworks.
"Considering the fact that in Russia regulation of digital rights and digital currencies is already developing rapidly, the discussion also focuses on the possible application of provisions of this more general regulation to such constructions as stablecoins if they are regarded from the viewpoint of investing," the Central Bank concluded.