According to the latest report from Russia’s central bank, this organization wants to impose a complete ban on crypto mining, trading, and usage. The report was published on January 20 and presented at an online news conference.
Digital Assets Deemed Volatile
Digital assets can be considered highly volatile. In addition, they’re often used in money laundering operations and for various types of fraud. What’s more, cryptocurrencies have the power to weaken the country’s monetary policies and the national economy.
The report further suggests penalties for using digital assets that would be applied to both institutional investors and individuals. To prevent the use of cryptocurrencies, no Russian financial institution should be utilized for crypto transactions.
Even though crypto mining seems to be growing in popularity in Russia, it’s also been highly criticized by the report. It’s noted that the mining operations generate a new supply of the coins, which in turn calls for other crypto-related services.
What’s more, it also creates non-productive electricity expenditure, which undermines the overall energy supply.
Finally, the central bank of Russia plans to monitor cryptocurrency transactions among Russian citizens. The plan is to cooperate with other countries that support cryptocurrency exchanges and get information about the said transactions.
On the other hand, the central bank of Russia believes that introducing digital Ruble, a central bank digital currency (CBDC), would meet the needs of Russian investors and provide them with the benefits of crypto, only without the risks.