As a seasoned crypto investor with over a decade of experience navigating the volatile world of digital assets, I find the recent developments in Russia’s stance on cryptocurrencies to be both intriguing and promising. Having weathered multiple market crashes and witnessing the rise of Bitcoin from pennies to tens of thousands of dollars, I can confidently say that I am not easily swayed by the winds of change.
It seems that the Bank of Russia is making progress towards trialing cross-border cryptocurrency transactions for experienced investors.
The Russian central bank, known as the Bank of Russia, is contemplating changes in the law to establish a fresh class of “highly skilled investors,” enabling such individuals to engage in cryptocurrency trading. As Russia investigates the potential application of cryptocurrencies for international transactions, this move could facilitate their use.
In an interview published on Monday, August 26th, in the Russian newspaper Izvestia, Alexey Guznov – Bank of Russia’s state secretary and deputy governor – hinted at a potential change in the country’s stance towards cryptocurrencies. Guznov revealed that the central bank is considering allowing a select group of expert investors to engage in trading cryptocurrencies.
At present, there’s a debate centered around granting access to a select group of highly skilled investors to trade digital currencies. This would allow them to buy and sell these assets. Yet, this matter is something for future consideration. For now, it’s crucial that we delve deeply into all potential risks associated with this practice.
Alexey Guznov, Bank of Russia’s state secretary and deputy governor
At present, there isn’t a law that specifically defines these investors, however, it appears that the central bank might be contemplating making changes in legislation to introduce and recognize this new type of investor.
The central bank is expressing a willingness to accept stablecoins in international trade, but only if they satisfy specific conditions. As per Guznov, if a stablecoin has a guarantor and resembles digital financial assets (centralized, tokenized assets issued in Russia), it can currently be utilized for cross-border transactions under existing laws. On the other hand, stablecoins managed by algorithms without a backing entity would be classified as cryptocurrencies and would need an experimental framework to be used across borders, he noted.
Following recent news about Russia’s exploration of establishing at least two domestic cryptocurrency exchanges, I find myself reflecting on this development as a researcher. Unlike typical crypto trading platforms, these proposed exchanges seem less focused on peer-to-peer transactions and more on the creation of stablecoins – digital currencies tied to various financial instruments. Notably, they are planning to develop stablecoins pegged to the Chinese yuan and a collection of BRICS currencies, suggesting an international monetary collaboration.
Read More
Sorry. No data so far.
2024-08-26 10:12