The Russian central bank allegedly said it wants to ban investments in cryptocurrencies in the country, seeing risks to financial stability in the rising number of crypto transactions.
The country’s financial kingpin did give digital currencies legal status in 2020, but it prohibited using them as a means of payment.
However, the chairman of the Duma Committee on Financial Markets, Anatoly Aksakov, said there was a very tough approach to the complete prohibition of cryptocurrencies, such as acquisition or ownership.
“There exists an approach where there must be appropriate crypto exchanges, where everything is legalised, transparent, and understandable to regulatory bodies,” he said.
“It would be easier for the Federal Tax Service of Russia to tax such exchange transactions.”
For now, Russian authorities prioritise the launching of a CBDC ruble and have enacted tough crackdowns on the private crypto sector, including banning mutual funds from investing in Bitcoin (BTC).
Most recent figures, however, suggest that Russians transact about $5bn each year in cryptocurrencies and that cryptocurrencies are a hedge for 46% of Russian retail investors.
According to a survey, cryptocurrency is the primary source of income for 12% of the Russian-speaking crypto users, and more than 90% of the respondents expressed their desire to use digital coins as a means of payment.
Russia can boast many prominent names in the crypto world, including Vitalik Buterin and Igor Barinov.
Some of the other names associated are Aleksander Ivanov, founder of the Waves Platform; Sergei Chekriy and Yury Mukhin the two Russian entrepreneurs behind I-chain, while Alex Fork is the CEO of Fintech firm Humaniq.
Some of the most popular Russian cryptocurrencies, which need not be originated from Russia are: Bitcoin
Bitcoin is being widely used in Russia – 40% of the participants view cryptos like Bitcoin as a good long-term investment. People already can pay with Bitcoin for some hotels and restaurants and also cars and furniture, meaning it is being used as a payment medium.