According to reports from Russia’s Central Bank, crypto will not be able to compete against a digital ruble, and it will have no place in the Russian financial system at all.
While not going as far as China’s blanket ban on all cryptocurrency transactions, the Central Bank of Russia (CBR) has made it clear that cryptocurrencies will not be permitted to obstruct the launch of its central bank digital currency (CBDC).
Like China’s, the Russian central bank is reported to be nearing completion on a prototype for the digital ruble, and the Russian central bank does not want its citizens’ interest in cryptocurrencies to affect its centralized digital currency.
In January, pilots for the digital ruble will take place. Several Russian banks will participate in the trials, which will go until 2022. Consumer-to-consumer transactions will be tested in the first stage, while private persons and businesses will be tested in the second.
A recent piece explained how relaxing the formerly strict stance on cryptocurrencies would enable citizens to buy and retain them, but not through Russian financial markets.
This month, a crypto working group will meet at the Duma. It will look through the CBR report, while no big changes to Russia’s policy on cryptocurrencies are likely.
It appears to be pretty bad for Russian nationals that their country has opted to follow China’s lead in tightening control over them.
In this regard, both countries share a similar history of authoritarian control, and citizens in both countries have faced threats to rights and freedoms taken for granted in much of the West.
Even though the Federal Reserve has stated that it is not considering a CBDC, its cryptocurrency handling in recent years has been significantly more negative than good.
It might also be claimed that the Federal Reserve’s monetary policy actions indicate that the “land of the free” could follow in the footsteps of Russia and China in the future.