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Bank of Russia says stablecoins are very risky and not suitable for payments

The Central Bank of Russia has spoken out against stablecoins, which it says are very risky and not suitable for payments. The monetary authority reacted to a statement by a senior Finance Ministry official who hinted that his department would support the development of Russian stablecoins.

The Central Bank of Russia opposes stablecoins.

Unlike the Ministry of Finance, the Central Bank of Russia (CBR) believes that stablecoins are not intended for settlements, either at home or abroad. The monetary authority said that issuing and using private stablecoins is associated with high risks, as the underlying assets do not belong to the holder. Quoted by the information site on crypto-currencies Bits.media, she specified :

Therefore, redemption at face value of collateral assets is not guaranteed, and the price of a stablecoin is not truly stable.

The regulator commented on a recent statement by the head of the finance ministry’s financial policy department, Ivan Chebeskov, following his support for the development of stablecoins in Russia. The high representative stressed that the ministry is on the side of Russian companies, when it comes to regulating digital currencies.

If companies and investors need to pay or invest in a new way, if they need such a tool because it reduces costs, works better than previous instruments, and if the risks that associated with it may be limited, so we will always support such initiatives“, remarked Ivan Chebeskov during the “Russian Creative Week forum”.

During the round table entitled “The Impact of Web3 – New Era of Internet of Trust?“, the founder of Voronkov Ventures, Andrey Voronkov, pointed out that there is currently no blockchain-based stablecoin denominated in Russian rubles. According to him, they should be created because the existence of stable currencies linked to the dollar strengthens the American fiat currency.

In June, experts from the national economic development institute VEB.RF said issuing a gold-backed stablecoin for international settlements would help reduce pressure from Western sanctions. Their suggestion followed an earlier statement by the chairman of the State Duma’s Industry and Trade Committee, Vladimir Gutenev, who told RIA Novosti in January that Russia could allow the use of pegged stablecoins. so.

In the meantime, the Bank of Russia has been actively developing a digital version of the national fiat currency. First Deputy Governor Olga Skorobogatova reportedly said that the CBR is ready to carry out full testing of the digital ruble, both within the country and in business transactions with foreign countries. Amid growing financial restrictions, imposed following Moscow’s military intervention in Ukraine, Russia’s central bank has stepped up efforts to test and launch its CBDC.

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