Bank of Russia opposes the creation of stablecoins in Russia

The regulator believes that stablecoins carry high risks

12.07.2022 - 07:30

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What’s new? The Central Bank of the Russian Federation has spoken out against the issuance of stablecoins in Russia. A representative of the regulator told Vedomosti that private stablecoins are characterized by higher risks because the pool of assets underlying them is not owned by the owner. The Central Bank also noted that factually the price of stablecoin is not stable, and pointed out that there are no guarantees of repayment at the nominal price of assets in collateral.

Vedomosti’s material

What else did the Central Bank say? Representatives of the regulator stressed that only the ruble is legal tender in Russia, its only alternative could be the state-owned digital currency (CBDC).

“The digital ruble combines all the advantages of a digital means of payment and the reliability of a full-fledged currency,” the Bank of Russia explained.

This statement was made in response to a statement made by Ivan Chebeskov, Director of the Financial Policy Department of the Ministry of Finance of the Russian Federation. He noted that the Ministry of Finance supports the issuance of stablecoins within the country, as it can make it easier for businesses to operate.

In spring 2023 the Bank of Russia will test the digital ruble in real estate transactions, regular transactions, and payment upon receipt of goods. 12 banks are now in the pilot group to test the asset on real transactions and customers: SberBank, VTB Bank, Gazprombank, Alfa-Bank, Bank DOM.RF, Rosbank, Promsvyazbank, Tinkoff Bank, SKB-Bank, Ak Bars Bank, Transcapitalbank and Bank SOYUZ.

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