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Russian Central Bank Wants to ‘Limit’ Stablecoin Use in Payments

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Russia’s Central Bank desires to position itself because the nation’s digital economic system heart of gravity – and seems prepared to pave a manner for its forthcoming digital ruble to acquire market dominance. And it desires to ensure that of that by putting a restrict on the usage of stablecoins in settlements.

Per Interfax, Ivan Zimin, the pinnacle of the Central Bank’s monetary technology division was talking at a banking-related meeting of the Russian Union of Industrialists and Entrepreneurs, the place he spoke a couple of piece of laws that promulgated on January 1 this year. The legislation – Russia’s first crypto-specific act – has banned the usage of cryptoassets in settlements.

But Zimin said on the meeting that the measure was only a “first step” – and indicated that stablecoins have been the following goal.

He stated,

“We will most likely take the second step by limiting the use [of] stablecoins, for settlements. This is very important. The digital ruble and, in general, the ruble [will be] official means of payment. Everything else – stablecoins, unsecured private cryptocurrencies or other monetary substitutes – cannot be used as a means of payment.”

The Central Bank is hopeful of issuing its digital token as early as subsequent year, with a “prototype” prepared by the top of Autumn 2021.

But it seems not everybody is prepared to sing from the identical hymn sheet on this probably thorny difficulty.

The tech large and banking behemoth Sberbank – at the very least partially owned by the Russian state – has not too long ago unveiled plans to difficulty its personal stablecoin, and plenty of others are thought to be eager to comply with go well with. Many of those tasks are thought to be distinctly payment- and settlement-focused.

The identical media outlet quoted Anatoly Aksakov, head of the State Duma’s monetary markets committee, as stating that he was “puzzled” by Zimin’s remarks on stablecoins, notably in the sunshine of Sberbank’s project, which is ready to debut earlier than the top of Spring.

He said,

“From my perspective, we need a discussion involving tech experts, economists, and bankers [on the matter of stablecoin regulation].”

Interfax additionally quoted Aksakov as explaining that the present laws in Russia doesn’t classify stablecoins as “digital currencies” (tokens corresponding to bitcoin (BTC)). Instead, the legislation considers fiat-pegged tokens to be “digital financial assets,” and, due to this fact, not an unlawful type of settlements.

“I would not call a stablecoin a cryptocurrency, if we refer to the definition spelled out in the law on digital financial assets. There, a digital currency is defined as having no obligation or collateral. A stablecoin, on the other hand, has collateral, and so cannot be a digital currency,” Aksakov stated.

But it seems the Central Bank sees issues very in another way. Zimin stated,

“Stablecoins are also a digital currency, only secured. They are issued by a certain organization or company, backed up by some kind of [asset], be it money, gold, metal, or whatever else. The Central Bank adheres […] to the following ideology: that both cryptocurrency and stablecoins cannot be official means of payment. Only a digital ruble could [be used for payments.]”

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Learn extra:
– Russia Wants to Use the Digital Ruble to Power its USD Purge
– Independent Local Stablecoin Booming in South Korea’s Buyeo
– Visa Starts Settling Transactions in USD Coin On Ethereum
– Stablecoins May ‘Penetrate Non-Crypto Markets’ & Surpass USD 100B in 2021
– Thai Central Bank Sets A Precedent By Banning Baht-pegged Stablecoin

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