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Russia’s Central Bank is Against Stablecoins

Russia’s Central Bank is Against Stablecoins

In a new episode of the long-running battle between the Central Bank of Russia (CBR) and the country's Finance Ministry, representatives of the former have criticized the latter's idea of backing stablecoins that some private investors are trying to launch in the country.

According to local media reports, an unnamed central bank official has dismissed talks on Russia-based stablecoins initiated last week by the director of the Finance Ministry’s financial policy department, Ivan Chebeskov.

At the time, Chebeskov had expressed his ministry’s support for the creation of stablecoins pegged to assets such as “the ruble, gold, oil or grain.” He called this “the right way to develop new technologies” and urged private companies to try this kind of financial instrument if they found it necessary.

The CBR spokesman said private stablecoins “are characterised by higher risks” as the pool of underlying assets does not belong to the issuer. They also said there is no guarantee of redemption at par by the issuer and the price of stablecoins is not truly stable.

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In line with the CBR’s traditional announcement, the bank’s representative noted that the rouble remains the only legal method of payment in the country and stated his faith in the digital rouble, “combining all the advantages of digital payments and the reliability of the national currency“. As local industry experts sometimes point out, the central bank’s digital currency project is at the heart of the CBR’s suspicion of all private cryptocurrencies.

On June 29, the head of the CBR’s financial technology department, Kirill Pronin, acknowledged the possibility of legalizing crypto mining under certain conditions, namely exporting all mined assets to foreign exchanges. Ivan Chebeshkov of the Ministry of Finance did not fail to express his disagreement, noting the current geopolitical challenges facing Russian miners who want to sell their cryptocurrencies abroad.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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