Before presenting a comprehensive view of crypto regulations, the Central Bank of Russia stated that it believes that cryptocurrencies have no place in the country’s financial markets. The monetary authority also announced that the prototype of its own digital currency platform has been completed.

The Bank of Russia will release a report on cryptocurrencies

The Central Bank of Russia (CBR) is known for maintaining a strong stance on the legalization of cryptocurrencies and is now preparing a report detailing its views on the matter. Vladimir Chistyukhin, vice chairman of the regulatory agency, revealed in comments to the Russian media that the regulatory agency intends to adopt legislative reforms to promote the adoption of rules governing the circulation of digital assets.

“I think we will solve this problem by amending the legislation. There will be a more accurate definition of the way cryptocurrencies are traded,” Chistyukhin told reporters in the State Duma, the lower house of parliament.

The official pointed out that Russian citizens and companies have the right to buy and keep cryptocurrency, but not through the country’s financial infrastructure and intermediaries. He made the above remarks in response to a question about whether CBR advocates prohibiting transfers from accounts held by Russian citizens to cryptocurrency exchanges.

One working team Anatoly Aksakov, Chairman of the Parliamentary Financial Market Committee, announced in November that the first meeting on crypto regulation will be held in Duma this month, starting with a review of the CBR report. Chistyukhin commented on the content of the upcoming report:

Let me give you a reminder-we do not see the position of cryptocurrency in the Russian financial market.

His statement was made after Reuters quoted the source Indicated Regulators are considering banning the purchase of Russian cryptocurrency.Then, at a press conference on Friday, CBR Chairman Elvira Nabiullina reiterated the bank’s insist Russia’s financial system should not be used to promote crypto transactions.

The Central Bank of Russia prepares digital ruble prototype

While clarifying its position on cryptocurrencies, CBR has been working on the development of the digital currency of the Central Bank of Russia (Central Business District). First Vice Chairman Olga Skorobogatova told reporters this week that the prototype of the digital ruble platform has now been completed. The Interfax news agency quoted her as saying that the authorities plan to start using the currency for trials after the January holiday.

More than a dozen Russian banks will participate in the first phase of the trial, which will last until 2022. In early December, the Bank of Russia explained that it would invite credit organizations and develop consumer-to-consumer business in the first phase. The Federal Ministry of Finance and financial intermediaries will join in the second phase, when transactions between private and corporate entities will be tested.

Three years ago, CBR began to consider issuing a digital version of the Russian ruble, and last year decided to explore the possibility of issuing CBDC. A consultation document was released in October 2020, and the regulator collected feedback from financial industry participants. In April 2021, the bank released the digital ruble concept, outlining its main architecture.In addition to Russian citizens, the bank also plans allow Non-residents open a digital ruble wallet, use the currency, and convert it to foreign legal tender.

Do you think that Russian banks will prohibit crypto-related transactions through the Russian financial system? Tell us in the comments section below.

Lubomir Tasef

Lubomir Tassev is a tech-savvy journalist from Eastern Europe. He likes Hitchens’ famous quote: “Being a writer is my nature, not what I do.” In addition to encryption, blockchain and financial technology, international politics and economics Are the other two sources of inspiration.