Is Russias Economy at Risk from Cryptocurrency? Crackdown Possible.

Is Russias Economy at Risk from Cryptocurrency? Crackdown Possible.

The Russian Central Bank warns that cryptoassets have the potential to infect the country’s economy, but acknowledges the necessity for Russian firms to use cryptocurrencies in cross-border settlements in a way that does not lead to the spread of crypto throughout the financial system.

Cryptoassets have the power to “infect” the Russian economy, the nation’s crypto-skeptic Monetary Authority has warned.

Per the domestic news agency Interfax, the bank’s 1st Deputy Chairwoman Ksenia Yudaeva made the comments at a recent economic forum.

She argued that the Government and regulatory authorities required to secure that cryptoassets were restricted to the fringes of economic activity.

On the other hand, Yudaeva conceded that it was “necessary” for Russian corporations to “use digital currencies in cross-border settlements.”

Nonetheless, she insisted that this be done in a manner that “does not lead to the spread [of crypto] throughout the Russian financial system.”

The 1st Deputy Chairwoman said:

“The main [concern] of the Monetary Authority is the fact that the creation of such [trading networks] does not lead to the infection of our financial system with cryptocurrencies.”

Yudaeva added:

“We have always been, are, and remain against encouraging and traditionally allowing the use of digital currencies within Russia. On the other hand, we believe that digital currencies and digital assets can be executed in international trade.”

Yudaeva’s co- 1st Deputy Chair, Vladimir Chistyukhin, conceded that cryptocurrency already “occupies a certain niche” in the international trade sphere.

On the other hand, Chistyukhin opined that cryptoassets were “unlikely” to become a “panacea” for Russian traders attempting to evade Western-led sanctions.

Russian Monetary Authority Thinks Cryptocurrency Could ‘Infect’ Economy – Is It Too Late For It To Act?

Anatoly Aksakov, the head of the State Duma’s Committee on the Financial Markets, has indicated that big Russian corporations are already using cryptocurrency in trade deals.

He argued that corporations believed they were operating “in the spirit of the law.”

And these corporations do not think they must to wait for formal legal permission to buy and sell using crypto.

Moscow seems to be aware that corporations are doing business in this manner and has either given them its blessing behind closed doors or is turning a blind eye.

Another leading Monetary Authority official, in the meantime, noted at the same event that it was important that “Russian enterprises do not lose money when making digital currency payments.”

The bank favors a system whereby trading corporations use cryptocurrency under its supervision, as part of a pilot.

On the other hand, it appears that numerous corporations do not want to wait for this pilot to be officially launched.

Instead, they seem to be trading with international partners with relative impunity.


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