Russia is reportedly ready to prevent money transfers to crypto exchanges. This step would translate as a kind of ban on trade in crypto exchanges.
Russian bans money transfers to crypto exchanges
The report was brought by the Bitcoin.com portal, which cited sources connected to the Russian Central Bank. CBR allegedly cooperates with commercial banks to prevent the transfer of money to crypto exchanges. The goal is to limit the “emotional purchase” of cryptocurrencies.
At a meeting entitled “Banks of Russia – XXI. Century ”Sergei Shvetsov of the CBR Board reiterated that cryptocurrencies are a high-risk asset. That is why the Russian central bank is very skeptical of them. The CBR representative also allegedly stressed the risk that the value of cryptocurrencies could fall to zero. This can happen for hundreds of reasons. He therefore said that the whole sector is like a minefield.
Russia seems to be very concerned about the expansion of cryptocurrencies. This step follows another restriction. We recently informed you that the central bank “advised” commercial banks to identify and block cards and accounts with suspicious activity. Crypto exchanges are also included in the criteria.
All indications are that Russia will do everything in its power to combat the spread of cryptocurrencies, especially if it believes that such businesses operate without proper licenses.
The aim of the monetary authority is to ensure that payments and transactions take place in a single currency: the ruble. The consequence of all this is that Russian banks, although aware of the high demand for cryptocurrencies, are currently unable to offer them to their clients.
This is the case with Tinkoff: Russia’s largest online bank is aware that its clients, especially institutional clients, would be willing to invest in cryptocurrencies, but at the moment the bank cannot meet this demand because the Russian Central Bank has taken a very tough stance on cryptocurrencies. .
Russia is not indifferent to technological developments. Elvira Nabiullina, BCR’s acting governor, said in an exclusive interview with CNBC that digital currencies are the future of Russia and the financial system, but with reference to the digital version of the ruble.
It is no secret that the Russian central bank is working to introduce a digital ruble. Of course, like any CBDC, this would not be a real cryptocurrency because it would be centralized. It would be issued and controlled by the central bank and the proprietary platform.
This would allow for fast transactions and low costs. And not only does the Russian Central Bank also believe that it will also become a weapon limiting the rise of BTC and other cryptocurrencies in general.