The Bank of Russia supported the potential ban on crypto payments

The Central Bank of the Russian Federation has reduced its rigidity on proposals to ban Bitcoin and crypto payments.

During a conversation with Russian news outlet RIA Novosti, President Elvira Nabiullina said that because of concerns about crime and market volatility, this decision should be made. The Russian bank justifies its support of the possible ban.

Russian-bank

“We still believe that cryptocurrencies carry significant risks. Such risks occur both in the field of money laundering derived from crime and terrorism financing, as well as in the performance of exchange transactions due to strong exchange rate fluctuations”.

The central bank offered an opinion when asked by RIA that “it is impossible to equate private cryptocurrencies with fiat money and cannot legally bid”.

“If the decision to ban crypto as a payment method at the legislative level, we think it is appropriate to support this position,” the bank agency said.

The law clarified the legal status of cryptocurrencies, including mining and token sale, which was reported to pass through the National Duma by the end of the summer session, but there were delays. Two of the three bills were passed in 2018. However, one of the two bills talks about digital rights and the other includes crowdfunding, RIA said.

Recently, the president of the organization, Elvira Nabiullina, said that the Russian central bank found no strong reason to launch a national cryptocurrency that could override the potential risks after the research.

Elvira Nabiullina, President of the Bank of Russia

According to Thursday’s report, Elvira Nabiullina, President of the Bank of Russia, said her organization was investigating the ability of a central bank digital currency (CBDC) and the need to launch new technologies that not clear to us.

Talking at the forum on innovative financial technologies, Finopolis, in Sochi, Russia, Nabiullina explained:

“Not only for technological reasons, but also because it is difficult to estimate the advantages that the national digital currency will bring.  For example, compared to current electronic non-cash payments, there are a lot of risks and advantages that may not be obvious enough. ”

Nabiullina has also warned of the risks of investing in cryptocurrencies, compared to gambling at a casino, according to RIA. In October, she argued, “There is an undeniable truth that free cheese is only available in a mousetrap: it is easy to earn money quickly to leave.”

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