The Central Bank of Russia has backed on a potential ban to support cryptocurrency payments.
On Nov. 29, Russia’s state-operated news agency, RIA reported that Russia’s central bank has the view that “private cryptocurrencies cannot be equated with fiat money and cannot be legal tender.”
An official of the central bank added:
“If it is decided to ban cryptocurrencies as a means of payment at the legislative level, we consider it appropriate to support this position.”
Russia Justifies Its Support of a Possible Ban
The legal status of cryptocurrencies, including mining and token sales, was reported to be passing through the State Duma by the end of the last summer session although there had been delays.
RIA said that the two of three planned bills were passed in 2018, however, one regarding digital rights and the other covering crowdfunding.
The Bank of Russia justified its support of a possible ban, saying:
“We continue to believe that cryptocurrencies carry significant risks, including in the field of laundering of proceeds from crime and financing of terrorism, as well as in conducting exchange transactions due to sharp exchange rate fluctuations.”
Russia Sees No Strong Reason To Launch A National Cryptocurrency
However, the institution’s chairperson, Elvira Nabiullina adds that the central bank sees no strong reason to launch a national cryptocurrency that would override the potential risks.
As reported by the RIA, Nabiullina also warned of the risks of crypto investment, comparing it with gambling at a casino.
In October, she said, “There is worldly wisdom that free cheese is only in a mousetrap: easily earned money quickly leaves.”
Source: CoinDesk | Image: Shutterstock