Russia central bank official warns against cryptocurrency

Russian central bank chief Elvira Nabiullina is also skeptical of cryptocurrency. The central bank shares JPMorgan Chase CEO Jamie Dimon’s doubtful view of cryptocurrencies and ICOs. But, Russia central bank official warns against cryptocurrency?

18 September, AtoZForex - As digital currencies and ICOs have caught fire across virtually every industry Russia also joined the global wave over the warning against cryptocurrencies. The chief of Russia's central bank spoken out against regulation that would classify cryptocurrency as a traditional financial instrument.

Russia central bank official warns against cryptocurrency - Arguments

Bank of Russia governor Elvira Nabiullina said she specifically opposes any policy that would deem the technology comparable to foreign currency, payment instruments or "monetary assets." Though, she stopped short of suggesting what determination she would ultimately support. Nibiullina had previously served as President Vladimir Putin's economic adviser. She was quoted as saying:
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"We are categorically opposed to introducing cryptocurrencies in regulation as a monetary asset, because … there is foreign currency, there are states that produce it, there are economies and central banks that are behind it."

Russia is not convinced cryptocurrencies are a good idea

The central bank shares JPMorgan Chase CEO Jamie Dimon’s skeptical view of cryptocurrencies and ICOs. It is signaling that not all Moscow authorities are convinced the new technology is a good idea. Another official from the Bank of Russia, deputy governor Dmitry Skobelkin also spoke out against cryptocurrencies.

"China doesn't recognize cryptocurrency as payment and forbids ICOs," he said. "Our views are absolutely similar. In our view, it's a sort of a financial pyramid that may collapse at any moment."

Although, the Bank of Russia, does not regulate domestic financial policy or introduce new laws. Nonetheless, the comments come at a time when all three groups continue to deliberate how best to regulate the emerging technology. However, the regulation on cryptocurrency trading is expected this year which could result in some kind of specific definition for cryptocurrencies under state law.

A senior official from the State Duma, Russia's national legislature, recently predicted that work will be completed by the end of the fall. The central bank in China has ordered an immediate halt to all fundraising efforts related to ICOs.  The efforts have raised $1.25 billion globally so far. Chinese regulators have also decided to close domestic trading cryptocurrency platforms.

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