Russian cryptocurrency may see light soon

June 20, 2019, | AtoZ Markets As the local media reports, Russia’s Central Bank is considering possibilities of issuing its own crypto in the near future. The head of the financial institution, Chairwoman Elvira Nabiullina, outlined, however, that it is not a development that could be made at this point in time. When the first Russian cryptocurrency will go live?

Will the Russian cryptocurrency to be launched soon?

During the student conference at Skolkovo, the Chairwoman Elvira Nabiullina outlined that the Russian cryptocurrency cannot be implemented immediately.

Although she added, that along with the Central bank of Russia, other local financial institutions also are considering an idea of adding their own crypto to the current banking system.

Nabiullina emphasized, that the implementation of the national Russian cryptocurrency must take into account the reliability of its technology.

The head of the Central Bank of Russia stated that the crypto technologies including technologies of distributed registries must be mature.

Nabiullina also noted that when switching to digital currencies, it is necessary to understand whether society is ready to give up cash.

She also advised the project authors to compare and explore the advantages of the national Russian cryptocurrency over other technologies, for example, the system of fast payments.

The long history of the Russian cryptocurrency

In 2017 German Gref CEO and Chairman of the Executive Board of the largest Russian bank Sberbank called crypto an “explosive technology”. Two years later the Russian government, following Venezuela example, reshaped its strategy toward crypto, encouraging the creation of more advanced laws that will facilitate crypto use and adoption.

Back then the deadline for the complete crypto law draft was set to July 2019. Although, Oleg Nikolaev, member of the State Duma Committee on Economic Policy, was hoping that the Duma will have time to prepare the appropriate bill by May 2019.

In February 2019, different media resources announced that Russia considers to launch its own oil-backed cryptocurrency and adopt a legislative act on digital coins.

Two months later, a source familiar with the Russian social network VKontakte revealed, that the company is exploring the possibility of creating its own cryptocurrency, as well.

On May 17 Venezuela and Russia started discussing the possible use of Venezuela’s state-backed cryptocurrency known as the Petro.

The Russian Federation is obviously putting strong efforts to elevate crypto expansion in the country, however, the newly accepted laws and regulations might put this process on halt.

As the local media reported in June 2019, the Russian State Duma may impose administrative responsibility for the mining of crypto on the open blockchain. The head of the Russian State Duma Committee on the Financial Market Anatoly Aksakov outlined, however then, that people can still own Bitcoins acquired under foreign law at foreign crypto exchanges, but not in Russia.

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