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Bank of Russia Says Stablecoins Are Not Suitable for Settlements

The Central Bank of Russia has spoken out against stablecoins, which it says are highly risky and not fit for payments. The monetary authority reacted to a statement by a top finance ministry official who suggested that his department would support the development of Russian stablecoins.

Unlike the Ministry of Finance, the Central Bank of Russia (CBR) believes stablecoins are not intended for settlements, either within the country or abroad. The monetary authority said that the issuance and use of private stablecoins is associated with high risks as the underlying assets do not belong to the holder. Quoted by the crypto news outlet, it elaborated:

Therefore, redemption at the nominal price of the assets in collateral is not guaranteed, and the price of a stablecoin is not actually stable.

The regulator commented on a recent statement by the head of the finance ministry’s Financial Policy Department Ivan Chebeskov, who vowed Minfin’s support for the development of stablecoins in Russia. The high-ranking representative emphasized that the ministry is taking the side of Russian business, when it comes to regulating digital currencies.

During “The Impact of Web3 – New Era of Internet of Trust?” panel discussion, the founder of Voronkov Ventures, Andrey Voronkov, noted that right now there are no blockchain-based, Russian ruble-pegged stablecoins. In his opinion, they should be created as the existence of stablecoins linked to the dollar strengthen the U.S. fiat currency. Chebeskov chose not to predict when a stablecoin pegged to the ruble could be issued.

Do you think Russia will legalize stablecoins and issue one pegged to the ruble? Share your expectations in the comments section below.


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