A report by Russia’s Central Bank proposes to outlaw trading, mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. and use of cryptocurrencies in the country.
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Russia should ban cryptocurrencies, the country’s central bank said in a document published today by the authority and reported in turn by media outlet Coindesk.
El informe, “Cryptocurrencies: trends, risks, measures”, was presented during an online press conference with Elizaveta Danilova, head of the Financial Stability Department of the Bank of Russia.
This paper is very negative about cryptocurrencies. It stresses that crypto is volatile and is widely used in illegal activities such as fraud. It adds that by providing an outlet for people to take their money out of the national economy, they risk undermining it and hindering the regulator’s job of maintaining optimal monetary policies.
Therefore, the bank suggests that Russia needs new laws and regulations that effectively prohibit any cryptocurrency-related activity in the country . In particular, it says that the issuance of cryptocurrencies and the organization of their circulation in Russia should be banned. The ban should apply to exchanges, over-the-counter trading desks and peer-to-peer platforms.
Do not allow investment
He further adds that the existing ban on the use of crypto for payments should be strengthened, and punishment should be introduced for the purchase or sale of goods, services and labour by Russian persons and companies .
Also, the report says that Russian institutional investors should not be allowed to invest investing is when you put money in a financial scheme with the intent of making a gain. in cryptoassets and no Russian financial organization or infrastructure should be used for cryptocurrency transactions. The Bank of Russia had already banned in December 2021 from mutual funds to invest in cryptocurrencies . Now, he suggests introducing a punishment for breaking in the world of cryptocurrencies, breaking the forward compatibility of cryptoassets is seen in hard forks of a cryptocurrency. this prohibition.
Bad mining
Cryptocurrency mining, which flourished in Russia in recent years and even got some nods of approval from the country’s parliament last year, also came under fire from the bank.
Mining creates a new supply of cryptocurrencies, thereby stimulating demand for other cryptoservices such as exchanges and“crea un gasto de electricidad no productivo, lo que socava el suministro de energía de los edificios residenciales, la infraestructura social y los objetos industriales, así como la agenda ambiental de la Federación Rusa”, says the report.
La “optimal solution” would be to ban cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. mining in Russia the regulator said in the report.
Control total
The central bank plans to monitor cryptocurrency transactions by Russian residents and coordinate with countries where cryptocurrency ixchanges are registered to obtain information about Russian users’ transactions, the report said.
The regulator believes that in the future, the improvement of the current banking infrastructure, as well as the introduction of the digital digital technologies are these electronic tools that have the ability to generate, store or even process data. ruble, a central bank digital currency currency is a medium of exchange that defines value. (CBDC) currently being worked on by the Bank of Russia, will meet Russians’ need for fast and cheap money, giving them digital payment options and providing them with crypto-free crypto advantages.
As for the investment attractiveness of cryptoassets, it can be replaced by digital assets, which will be issued in Russia under the law on digital assets, effective from the summer of 2020, the Bank of Russia said.
Earlier, the Bank of Russia said that Russians make crypto transactions worth more than USD $5 billion in a year, but did not clarify how this number was calculated.
It is worth remembering that on countless occasions the Russian government has expressed its rejection of cryptocurrencies The government has had a bipolar attitude in this regard, because on some occasions it has supported them, such as in October 2021, when there was talk that they could help in the de-dollarization plan .
Sources: Coindesk , Finbold, archivo
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