Post Menu and Details.
- Russia wants to test digital money.
- Will the Russian Central Bank ban all crypto shortly?
- Russia and Bitcoin
- Ban seems out of the question.
- Bitcoin mining
- Cryptocurrencies prices are falling after Russia and Ukraine border tension.
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Next year, the Russian central bank wants to experiment with digital rubble early. Central bank chief Elvira Nabiullina announced this on Tuesday during an online appearance at a conference of the Finnish central bank. The prototype of a platform for central bank money is expected to be available in early 2022. Only after the test phase should a final decision be made on whether digital money will be introduced. In the future, it should also be explored how people can connect the national digital ruble platform to the digital money systems of other central banks. If you want to start bitcoin trading, check the key drivers of bitcoin.
On the other hand, The Bank of England (BoE) and the Treasury announced consultations on CBDC for next year. However, according to the BoE, no decision has yet been made regarding such a project of national scope. At the same time, this is still a long way off: “The earliest possible date for launching a British CBDC would be in the second half of this decade.”
Russia wants to test digital money.
Most of the world’s countries are now introducing digital currencies. The head of the Chinese central bank (PBOC), Yi Gang, said in an online appearance at the conference that the Chinese government would push the project further and authority would work on the design of the digital currency. It is essential to test the effects of central bank money on monetary policy and the financial market. The PBOC has already started extensive test runs with a digital yuan in several metropolitan areas.
The European Central Bank has launched a two-year investigation phase to determine the core characteristics of the digital version of the euro. Still, it could take the “digital euro” many years to become an actual currency.
The main objective of government and central banks to introduce the digital euro is to make transactions and payments digitized. Facebook’s update about its coming digital coin is also a reason behind this move to Russia. After Ethereum’s record hunt, the leading cyber currency, Bitcoin, has also set a new record.
Will the Russian Central Bank ban all crypto shortly?
The Central Bank of Russia wants to prohibit the usage of cryptocurrencies. This move could be a possible risk for the country’s financial system.
It is also big news recently that Putin wants to regulate bitcoin after seeing potential benefits in mining. Russian President Vladimir Putin has asked the country’s Ministry of Finance and the Central Bank to agree on bitcoin legislation quickly. According to the president, the country has a competitive advantage in mining bitcoin because of the large energy surpluses.
Russia and Bitcoin
The Russian government is in favor of a new legal framework for bitcoin. It is because regulating digital currency can generate tax revenues for the government. Moreover, it is in contrast to the country’s central bank, which wants a complete ban on the use and mining of bitcoin.
Putin is against this and points to Russia’s competitive advantage in mining the digital currency because of the many energy surpluses. “The Central Bank will not stand in our way when it comes to technological developments and will also make every effort to keep up-to-date with the latest techniques,” Putin said in a meeting with the Russian Federation Council members.
Vice Prime Minister Dmitry Chernyshenko came out last Friday with a roadmap for the regulation of bitcoin, among other things. For example, the document looked at the identification of customers and the developments of loan platforms. These are websites where you can use bitcoin as collateral for a loan, or vice versa, where you can lend your bitcoin at interest. Furthermore, the Ministry of Finance announced yesterday that it would permit banks to offer bitcoin. However, the minister said that both trading and managing bitcoin for customers must be regulated.
Ban seems out of the question.
Although the Central Bank of Russia favors a complete ban on bitcoin, mining, and other cryptocurrencies, that seems an unlikely outcome. Elizaveta Danilova says comparing bitcoin to money is ‘incorrect and very dangerous. Digital currency, according to Danilova, is a development that carries risks, even if it is regulated.
Russian Finance Minister Ivan Chebeskov thinks otherwise. ‘We must regulate, not ban,’ says Chebeskov. A complete ban could lead to the growth of an unregulated black market in which the use of bitcoin will only increase. In addition, a ban will hold back Russia’s innovation in the tech industry. President Putin agrees. He believes that the country can derive benefits from, for example, mining bitcoin and has therefore asked the Central Bank and the Ministry to reach an agreement quickly.
After the ban on mining in China, countries such as Russia, Kazakhstan, and the United States have become popular destinations for miners. The reason for this is the cheap energy. As a result of energy surpluses in places where more energy is produced than local consumption, the energy price is low, making it economically advantageous to mine bitcoin. After all, that is an energy-intensive process.
In Russia, especially Irkutsk, Krasnoyarsk, and Karelia regions have large energy supply surpluses. According to sources, Putin wants to introduce restrictions that allow mining only in these places.
The Russian Chamber of Commerce is also in favor of regulating bitcoin mining. In a letter to the Ministry of Finance, the Russian Chamber of Commerce urged to clarify the rules regarding bitcoin mining quickly. According to the House, the law and regulations are now unclear and hinder innovation in the industry. However, according to Bloomberg, there is a good chance that the proposals will be adopted. President Putin supports the proposals because of the various public statements over the past week.
Cryptocurrencies prices are falling after Russia and Ukraine border tension.
After a recent development of the border tension between Russia and Ukraine, bitcoin prices are started to decline rapidly. Many investors and financers are afraid that if the tension persists for a long time, the prices will decline further.
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