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Stablecoin Use in Payments to be Limited, Says Central Bank of Russia

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Apr 6, 2021

In a matter of a year, Russia has managed to gain a lot of attention from the entire world in terms of digital assets. The country has gone onto giving legal status to cryptocurrencies, adopting crypto-mining on an enormous level, and launch its own CBDC.

Russia is currently one of the top countries that are now in their final phases of the testing processes for the CBDC. The Central Bank of Russia has been working on the central bank digital currency project since the mid of last year.

It is hoping to launch the digital ruble either by the end of the year 2021 or in the 1st quarter of 2021. When it comes to the digital economy, the country has started making a lot of progress. Many sectors in the country, whether government, private, or partial are in the process of adopting crypto-blockchain technology.

However, it is the Central Bank of Russia that wants to ensure that the digital economy remains under its control. The Central Bank of Russia intends to stay on top of the digital economy development and steps to make it even more adaptable and profitable.

It has been revealed that the Central Bank of Russia is set to come up with a new proposal that would give its digital-ruble even more boost in the country’s digital economy.

Over time, all the actions taken by the Central Bank of Russia have demonstrated how serious it is when it comes to the commercialization of the digital ruble.

Compared to other cryptocurrencies or digital assets, the Central Bank of Russia wants to ensure that the digital ruble gains prominence among the rest.

In order to accomplish the above, the Central Bank of Russia has expressed that it has a plan. The regulator has stated that it wants that the usage of other digital assets/stablecoins can be restricted to a certain limit.

According to the latest reports, the financial technology department’s head of the Central Bank of Russia, Ivan Zimin talked about legislation that has been implemented from January 1, 2021.

Zimin talked about the legislation during a meeting where the Entrepreneurs and Industrialists from Russia had all gathered. He talked about the act that was the first-ever introduction for cryptocurrencies. He reminded all the members of the meeting that the particular act prohibits settlements to be processed using cryptocurrencies.

He stated that the law is the first step to ensure that the cryptocurrency assets do not end up taking over the entire economy. The second step would be the limitation of stablecoins when it comes to settlements.

With the implementation of rules against the settlement of cryptocurrencies and stablecoins, the Russian regulator is making sure that once launched, the digital ruble takes the lead in the digital economy.

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