After China Now Russian Central Bank Aims To Ban Cryptocurrency

OVERVIEW

  • In the year 2020, authorities will grant cryptocurrency legal status.
  • “Speculative demand” is driving the rapid expansion of cryptocurrencies.
  • The FSB had pressed Elvira Nabiulina, the head of the central bank, for a ban.

The Russian central bank advocated cracking down on cryptocurrencies on Thursday. A move that, if implemented, might destabilise the booming virtual currency sector, as Russia is one of the world’s top crypto-mining nations.

For years, Russian officials have criticised cryptocurrencies and demanded for regulation. Citing concerns that they could be used for unlawful purposes. Cryptocurrencies were granted legal status in 2020, but their usage in payments was never approved.

The Bank of Russia proposed on Thursday that the ban on cryptocurrency payments be strengthened, that cryptocurrency mining be prohibited, and that legislation governing virtual currency trade be tightened.

Crypto Fans Are Very Unhappy Due To Russia Ban

“The usage of cryptocurrencies poses considerable risks to the well-being of Russian residents and the financial system’s stability,” the central bank warned in a study.

While Russia granted bitcoin legal status in 2020, it has already made it illegal to accept cryptocurrencies as a form of payment for products or services.

The most recent study, however, focuses on stiffer punishments for individuals who break the rule.

Individuals aare very unhappy with the decisions of banning cryptos and outages on the microblogging site.

According to reports, the bank is also planning to launch its own digital currency (CBDC) or digital ruble, which it believes will represent the future of banking in the country, meeting citizens’ demand for quick, efficient, and low-cost payment choices.

While the report calls a complete ban the “best” and “optimal” solution for Russia, it also points out that mining “creates a non-productive electricity expenditure, undermining the energy supply of residential buildings, social infrastructure, and industrial objects, as well as the Russian Federation’s environmental agenda.”

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