The Central Bank of Russia and the Ministry of Finance clash over stablecoins

A representative of the Central Bank of Russia (CBR) said that private stablecoins are fraught with risk because the underlying asset pool “does not belong to the owner”. In turn, this potentially means that face value redemptions are not guaranteed.

“Furthermore, repayment at face value of collateral assets is not guaranteed and, in fact, the price of the stablecoin is not stable.”

The comments contradict an earlier statement by Finance Ministry chief Ivan Chebeskov, who expressed doubts about cryptocurrencies, in general, during a recent roundtable on the impact of Web3. But whatever the concerns, Chebeskov was open to the idea of ​​a Russian-backed stablecoin.

Russian-backed stablecoin

Chebeskov said stablecoins could be used as a “tool” to reduce costs and other frictions associated with doing business. He added that the ministry will “always support” a government-backed stablecoin if the risks are low.

He said a product could be underwritten with a physical asset, such as ruble, gold, oil or grain.

“If there is a need for companies, companies or investors to set up, to invest in a new way, if they need such a tool, because it reduces costs, works better than previous tools, and if the risks associated with it can be limited, we will always support such initiatives.

Despite Chebeskov’s openness to the idea, the unnamed CBR representative maintained that the ruble was the only legal tender in Russia. However, a potential compromise lies in the development of a ruble-backed stablecoin, which could combine the advantages of stablecoins with the “reliability” of the ruble.

Combining all the advantages of a digital means of payment and the reliability of a fully-fledged currency.”

Russia turns to crypto amid biting sanctions

Since the outbreak of the conflict in Eastern Europe, Russia has reversed its previous anti-crypto stance, which at one point seemed to be heading towards an outright ban.

Observers attributed the reversal to the sanctions, which isolated the country from international trade.

Consequently, Russia has become increasingly open to cryptocurrencies, such as opening discussions on their legalization as a means of payment.

The Ministry of Finance On digital currencies The bill aims to create a legal framework for cryptocurrencies, in particular by establishing rules on the circulation and registration of exchanges.

However, according to the Russian-language newspaper Vedomosti, the latest draft allows individuals to use crypto as a means of payment only for foreign trade, while its domestic use (as a means of payment for goods and services) will be prohibited. .

Posted in: Russia, Stablecoins