Bank of Russia’s Governor opposes the use of private cryptocurrencies in payments

In this, the regulator supports the digitalization of finance and the development of DFAs

08.11.2022 - 09:45

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What’s new? The Bank of Russia does not change its position on the prohibition of private cryptocurrencies for use in payments. This was stated by the Central Bank’s Governor Elvira Nabiullina, speaking in the State Duma. However, she noted that the regulator supports the digitalization and development of digital financial assets (DFAs), stressing that “the financial system in this regard is quite advanced,” TASS reports.

Material by TASS

What else did the Central Bank’s Governor say? According to Nabiullina, it is important not to lose the tried and tested modern technologies and further develop in a new environment. She added:

“Digital financial assets are not reduced to ‘crypto,’ to private cryptocurrencies. We did not change our position on the fact that private cryptocurrencies — for which it is not clear who is responsible, how responsible, which are non-transparent and bear great risks of volatility — are not used in payments.”

In June, Nabiullina already said that cryptocurrencies should not be used as a means of payment within the country. Herewith, this type of asset, as well as the digital ruble, can be used in international settlements. In October, deputy Anatoly Aksakov proposed to prosecute for payments in cryptocurrency in the Russian Federation.

In November, the Bank of Russia issued a report in which it proposed to make digital assets a separate object of regulation with a special legal status, different from traditional financial instruments.

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