Russia Central Bank Comes Out Against ‘Monetary Substitutes,’ But Supports Stablecoins

The Russian is not on the cryptocurrency train completely but nonetheless seems to be eyeing stablecoins.

Bank of Russia Clarifies Stance on Cryptocurrencies

The Bank of Russia recently put out a statement saying that it was ‘studying’ how various digital currency pilots are working in other countries. That being said, the bank affirmed that it does not support ‘private money’ of any kind—specifically talking about cryptocurrencies. The comments were made by the head regulator at the bank, Elvira Nabiullina, in a speech to the State Duma. It was first reported by Russian News Agency TASS and the statement was released publically on Twitter as well by the Bank of Russia.

Председатель Банка России Эльвира Набиуллина на заседании Совета Федерации расскажет о развитии финансового рынка. https://t.co/yCZbSg96yx

— Банк России (@bank_of_russia) November 6, 2019

The most immediate case-study the Bank of Russia is undoubtedly looking at is China’s own stablecoin. Although not yet released, there has been something of an ‘arms race’ among governments worldwide on who will issue the first, successful stablecoin. Russia is no stranger to cryptocurrencies, however. Despite the Bank of Russia not outright voicing any support for cryptocurrencies, the industry has thrived in the country. There are even reports that an aide of President Vladimir is planning on opening a Bitcoin mining operation that seeks to control 20% of the network’s hashrate. 

A Russian Government-Backed Stablecoin May Be on the Table

There are currently no talks of a ruble-backed stablecoin issued by the Bank of Russia. However, it seems that the country is actively following international developments in the hopes of discovering a model on how to best implement stablecoins. China’s experiments will prove to be a central focus—and the two geopolitical allies would likely share some of this financial infrastructure. So, if China’s stablecoin experiments are successful, we could very well see Russia follow its lead. Russia’s and China’s end-goal is to ultimately destabilize the dollar’s dominance on the world stage. Both countries have already been buying gold in massive amounts—so, Russia’s newfound interest in Bitcoin and cryptocurrencies is a logical next step.

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