Russian central bank: it is necessary to limit the role of stablecoin

Russia's central bank wants to prepare its domestic market for digital ruble issuance. Reportedly, the authorities plan to limit, for example, the use of stablecoins in [...] https://www.pinterest.com/pin/1085437947660215829/

The Russian central bank wants to prepare its domestic market for the issuance of a digital ruble. Reportedly, the authorities plan to limit the use of stablecoins in settlements, for example. Central bank vs stablecoins According to Interfax, Ivan Zimin, head of the central bank's financial technology department, spoke at a banking-related meeting held by the Russian Union of Industrialists and Entrepreneurs. At it, he discussed, among other things, the law promulgated on January 1 this year. It is about the first Russian law on cryptocurrencies. Recall that it banned the use of cryptocurrencies in settlements. Zimin added that this is only the "first step". The new target will reportedly be stablecoins. - Most likely, we will take a second step, limiting the use of [stablecoins] for settlements. This is very important. The digital ruble and the ruble in general [will be] official means of payment. Everything else - stablecoins, unsecured private cryptocurrencies or other money substitutes - will not be allowed to be used as means of payment," he said. Digital ruble vs stablecoins companies Russia's central bank hopes to issue its digital currency as early as next year, with a "prototype" ready by the end of fall 2021. However, the stablecoin issue is likely to spark conflicting reactions in the country from authorities and large companies. For example, the bank Sberbank - at least partly owned by the Russian state - recently revealed its own plans to issue its stablecoin. And Anatolii Aksakov, head of the State Duma's financial markets committee, said he was "intrigued" by Zimin's comments on stablecoin, especially in light of Sberbank's project, which is expected to launch before the end of spring. - From my perspective, we need a discussion involving technical experts, economists and bankers [on stablecoin regulation], he said. Interfax also quoted Aksakov, who explained that current legislation in Russia does not classify stablecoins as "digital currencies." Instead, the law recognizes them as "digital financial assets" and therefore not an illegal form of settlement. - I would not call stablecoin a cryptocurrency if we refer to the definition in the law on digital financial assets. There, digital currency is defined as having no collateral. On the other hand, stablecoin has collateral, so it cannot be a digital currency," Aksakov said. Tags central bank central bank stablecoins cbdc Russia ruble