Russia’s Central Bank Says It Will Support The Next Crypto Ban

Russia’s Central Bank says that ‘’private cryptocurrencies cannot be equated with fiat money and cannot become a legal tender’’ after they were asked by the state news agency RIA so we are reading more about it in the latest cryptocurrency news.

According to the Russian banking authority said:

“If it is decided to ban cryptocurrencies as a means of payment at the legislative level, we consider it appropriate to support this position.’’

The legislation clarifies the legal status of the cryptocurrencies including token sales and mining which were reported to be passing through the state Duma by the end of the summer session, however, there were a lot of delays. Two of the planned bills were passed in 2018 but there was one regarding the rights and the other covering crowdfunding according to RIA. Russia’s central bank says that the ban is justified by saying:

“We continue to believe that cryptocurrencies carry significant risks, including in the field of laundering of proceeds from crime and financing of terrorism, as well as in conducting exchange transactions due to sharp exchange rate fluctuations.”

Recently, the chairperson of the institution Elvira Nabiullina explained that after the research, the bank sees no real reason to launch a national cryptocurrency that would override the potential risks. Nabiullina also warned of the high risks when investing in crypto compared with the gambling at a casino. She even said:

‘’There is a worldly wisdom that free cheese is only in a mousetrap: easily earned money quickly leaves.”

Russia’s crypto legislation is taking a sharp U-Turn as the local experts do not rule out that it could effectively stop the people in the country from legally trading in Bitcoin (BTC), Ethereum and other major altcoins on domestic exchanges. Nabiullina previously stated that although there is an incentive to go crypto, the society will not be open to give up cash for digital alternatives. Nabiullina also argued that the monetary and in general- Russia sees no real benefit to launching its own cryptocurrency. She said that the Central Bank of Russia does not see any compelling reasons to launch it.