Cryptocurrencies are anonymous and the government shouldn’t encourage their spread, the head of Bank of Russia has insisted. The Russian Federation regulator is still opposed to legalizing bitcoin and similar payments.

Bank of Russia Reveals Negative Stance on Cryptocurrencies and Legalization of Bitcoin

A “responsible state” should not stimulate the proliferation of cryptocurrencies, according to Elvira Nabiullina, chair of the Central Bank of Russia (CBR). In the lower house, the State Duma, the head of the monetary authority made this declaration.

The high-ranking official stressed that the bank had “an extremely negative attitude toward cryptocurrencies”. She described them as “private currencies pretending they are money”.

These cryptocurrencies are anonymous, no one is accountable for them, and, in our opinion, a responsible state should not stimulate their spread and squeeze them out of payments.

The governor also acknowledged that people should be offered an alternative. The Bank of Russia is working to achieve this through its projects. Elvira Nabiullina said, “I have already spoken of the digital ruble – in our opinion this should develop,” Elvira Nabullina added.

The head of Russia’s monetary regulator noted that the CBR was not against digital currencies in general provided that they are not used to “shadow operations.” Nabiullina however pointed out that the Bank of Russia still opposes legalizing bitcoin as a payment method in Russia.

The Russian central bank is stepping up efforts to create a digital ruble, a national fiat currency, in response to rising interest in cryptocurrencies and increased electronic payments. This year, the regulator formed a digital ruble pilot group with over a dozen financial institutions. A prototype of the CBDC platform will be launched in December, with trials scheduled to commence in January.

The digital ruble is what the Russians need as it will facilitate cheap and reliable non-cash payments, Nabiullina recently told participants in an international banking forum. According to the country’s latest financial market development strategy, the state-issued digital currency should prevent citizens from using ‘money surrogates,’ a term used by officials in Moscow to describe cryptocurrencies.

Do you think Russia will ever legalize bitcoin as a means of payment? Please share your thoughts in the comments below.

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