The Bank of Russia had an exciting announcement recently on their plans on launching stablecoins. Additional commentary by bank officials.
The Bank of Russia recently started to test stablecoins linked to real assets in a regulated sandbox.
The Central Bank’s head Elvira Nabiullina explains that the bank doesn’t consider such stablecoins to be substitute for a new form of payment or better yet money.
The head of the bank stated that they are currently exploring stablecoins, as cryptocurrencies pegged to assets to prevent volatility, that is a common issue within the crypto markets.
“We are testing stablecoins in our regulatory ‘sandbox’. We see companies willing to issue tokens pegged to certain real assets. In our regulatory sandbox, we are learning the potential uses of stablecoins but we do not assume that they will function as a means of payment and become a surrogate for money.”
The Russian central bank is also launching their own currency (CBDC), also known as digital ruble. Nabiullina commented that the bank is quite interested in discovering all future benefits of CBDCs, based on other experiences worldwide.
All of these exciting announcements are fantastic for Russia’s crypto market and crypto community but the bank official states that recently in the past 2 years, cryptocurrencies in Russia became less popular. There are still people who believe in decentralized money, Nabiullina claims.
“We are against private money. If some digital currencies were designed to become a substitute for private money, we could not support that.”
According to a report by Coindesk, on the first of January, Germany will require people who own cryptos to be licensed and announce such matters to the Financial Supervisory Authority (BaFin) before the first of April. Crypto owners must apply for a license before the first of November.
However, one clause will allow continuation of services, as long as a custodians declare intentions to apply.
BaFin’s press officer Norbert Pieper says:
“As long as the legislation is not in place, BaFin is not going to think about how to cope or how to deal with the legislation.There is no date foreseeable by which we’ll be able to communicate the results of our assessment. We will certainly communicate that on our website.”