The Bank of Russia has highlighted the conditions it will need to consider when regulating the use of stablecoins for Russian individuals and companies. The bank stated that before a regulation is enacted, a thorough study of these assets and a discussion with the relevant actors of the market and the community around them should be conducted.
Bank of Russia Assesses Process to Establish Stablecoin Regulation
The Bank of Russia has given some guidelines to follow in the process of enacting regulations for stablecoins. The bank stated that it will need to understand more about these assets and have contact with the market forces that will seek to leverage them before issuing a definite law regulating their use.
According to TASS, the regulator stated:
Approaches to future regulation require thorough and comprehensive study and discussion with concerned public authorities, market participants, the expert community.
Also, the bank stated that there were different approaches to regulating stablecoins in the country, with one seeking to apply specific rules distinct from the ones proposed for other cryptocurrencies. However, the regulator acknowledges that there is still no international consensus on this consideration and that the world trend of establishing more general regulation will likely prevail.
Nonetheless, the Bank of Russia is set on one issue: to not allow stablecoins to be used as financial payment instruments like national currency, deeming their use between Russian citizens “unacceptable.” In this regard, the bank stressed that the only payment instrument in the country is the Russian ruble.
This is because the bank assesses that implementing stablecoins “in domestic payments is connected with major risks for price and financial stability.” Local news reports indicate that the regulation process is already underway, as was reportedly confirmed by the Ministry of Finance of Russia.
Stablecoins might become an important part of the Russian payment rails to transact in dollars even when facing Western sanctions. Elvira Nabiullina, Governor of the Bank of Russia, recently highlighted the relevance of cryptocurrency technological solutions in fighting the enactment of international sanctions, stating these create “opportunities for schemes which did not exist before.”
What do you think about the Bank of Russia’s stance on regulating stablecoins? Tell us in the comments section below.
