Russia’s Central Bank dismisses any need to issue national cryptocurrency

While several countries are wading into the cryptocurrency industry by issuing CBDCs and releasing their own national cryptocurrencies, Russia has confirmed that it won’t be following suit.

According to Russian state media, Elvira Nabiullina, Head of the Russian Central Bank, asserted at a recent event that the bank seems to find that there is no reason to issue a national cryptocurrency. Previously in June, Nabiullina had revealed that the regulator was considering launching its own cryptocurrency. However, her latest comments have firmly doused any speculation regarding Russia ever issuing its own national cryptocurrency.

Russia’s Central Bank has been studying the topic and seems to find that there is no “obvious” reason for its issuance, she added. Nabiullina also highlighted the risks that surround cryptocurrencies, stating that they outweigh the advantages of it. She said,

“Not only for technological reasons, but also because it is (difficult) to really estimate what advantages will the national digital currency give, for example, in comparison with existing electronic non-cash payments.”

Additionally, Nabiullina has time and again asserted that the Central Bank sees the possibilities of using blockchain technology. However, it is against the legalization of cryptocurrencies as a  means for payment.

Recently, Russia was also looking into taxing cryptocurrency mining, something which would be similar to taxing treasure findings or acquired properties. The country had also released a bill regulating digital rights pertaining to smart contracts, as well as cryptocurrencies.