cryptocurrency ban in Russia

Bank of Russia Sticks to Ban on Cryptocurrency Payments

Though cryptocurrency payments are changing the way we transact, there are still many controversies going around its ban. Previously we have come across many fact sheets that describe banks are barred to offer direct access to crypto assets. But the new law implementing at different states and countries have changed the mindset. A piece of recent news states that German banks will allow sell and store cryptocurrencies abiding the new legislation from next year onwards. However, Russian banks still not accept it. New reports come early this morning describes that Bank of Russia backs the potential ban on crypto payments. When asked for the reason, Bank of Russia explains that it’s difficult to equate private cryptocurrencies with fiat money. And thus, it can not be legal.

When a state-based news agency asks a question on their support for cryptocurrency payments ban, the Bank of Russia explains “the ban is done at their legislative level; so, it’s appropriate to support”. The legislative clearance should hit the mainstream by now. However, it has seen delays. Two to three bills have proposed to give legal status to crypto payments in Russia including mining and token sales. One of the proposed bills will also give authentication to digital rights and other crowdfunding services. But nobody can do anything about it until and unless any official confirmation comes straight from the legislative level.

The Bank of Russia justified its support on banning cryptocurrency payments by saying

We continue to believe that cryptocurrencies carry significant risks, including in the field of laundering of proceeds from crime and financing of terrorism. Additionally, the exchange of trasactions happen due to sharp exchange rate fluctuations.

The current chairwoman of Bank of Russia, Elvira Nabiullina earlier said that her institution had been investigating the possibility of a central bank digital currency. She also claims that she didn’t find any strong reason to launch a national cryptocurrency that would override the potential risks.

Elvira Nabiullina also warns about the risks of the cryptocurrency investment in the press meet. She also adds that it’s similar to gambling at a casino. Again she quotes that free cheese is only available at mousetraps and easily earned money quickly leaves.

It’s the Russian government who needs to decide on it and we can’t do anything about it. However, we can only say that the world is changing and so do the way we transact. If the Russian government didn’t find its value now; sooner or later it may change. But nothing is certain! Let’s see what the Russian government has to say about its ban on cryptocurrency payments in the upcoming days!

Meanwhile, do check why should you thank bitcoin in this Thanksgiving Day