September 30, 2022

Russian Finance Minister supports legalization of transactions with stablecoins

The Russian Ministry of Finance (Minfin) is ready to support the legality of transactions in Russia that use stablecoins, according to a senior government official.

Indeed, the head of the financial policy department of the Ministry of Finance of the Russian Federation, Ivan Chebeskov, noted that the ministry is in favor of allowing the circulation of stablecoins in the country, according to a report by the media. Russian. July 7.

The senior official made the comment while taking part in a discussion at Russian Creative Week titled “The influence of Web3 — A new era of trusted Internet?

Chebeskov pointed out that the Minfin considers the issue from the perspective of Russian business owners.

“If there is a need for companies, companies or investors to settle, to invest in a new way, if they need such a tool, because it reduces costs, works better than previous tools, and if we can limit the risks associated with it, we will always support such initiatives,” he said.

Using Crypto Can Build a New Financial System

The government official was also quoted by RBC Crypto as saying that blockchain technology in general, along with crypto assets, digitization and tokenization, could eventually provide a chance to build a whole new financial system.

It is worth mentioning that the ministry is aware that cryptocurrencies have the potential to pave the way for a new financial system, but they do not know whether or not this new system will be superior to the one in place.

“But one cannot be completely sure that it will perform better than existing financial systems,” Chebeskov said.

The Russian Ministry of Finance has been a driving force behind attempts to legitimize cryptocurrency activities in Russia. This year, it introduced a new bill, “On Digital Currency,” to address regulatory loopholes created by the “On Digital Financial Assets” law. In January 2021, the latter partly regulated crypto.

The ambiguous position of the Bank of Russia on crypto

On the other hand, the Central Bank of Russia has maintained fierce resistance to the idea of ​​allowing cryptocurrency transactions within the nation’s borders, even as it strives to create a ruble. digital and proposed a general ban on operations related to cryptocurrencies.

It has only recently begun to show signs of moderation, with Governor Elvira Nabiullina suggesting that the regulator could approve small-scale crypto payments in international settlements. This comes at a time when Western sanctions against Russia are getting tougher.

This comment was made by Chebeskov despite the fact that the infamous TerraUSD (UST) algorithmic stablecoin of the Terra (LUNA) ecosystem crashed in May, leading to a significant market decline and loss of confidence in stablecoins.

Anatoly Aksakov, the head of the Financial Market Legislative Committee, recently referred to the current state of the cryptocurrency market when he issued a warning that the future law, which has been the subject of many changes this year, would be “hard”. ”