Russian Central Bank is Testing Stablecoins
December 26, 2019 10:53 pm
The Central Bank of Russia stated that it is testing stablecoins pegged to real assets in a regulatory sandbox. Elvira Nabiullina, head of Russia’s central bank said that the bank doesn’t assume that those stablecoins will function as a means of payment or become a substitute for money.
According to the report, Nabiullina said that the Bank of Russia is exploring the potential uses of stablecoins cryptocurrencies that are pegged to another asset to prevent the volatility associated with crypto markets.
“We are testing stablecoins in our regulatory ‘sandbox’. We see companies willing to issue tokens pegged to certain real assets. In our regulatory sandbox, we are learning the potential uses of stablecoins but we do not assume that they will function as a means of payment and become a surrogate for money .”
The report also mentioned that the Russian central bank will explore the possibility of issuing its own central bank digital currency (CBDC), the digital ruble. The head explained that the bank first wants to understand the potential benefits of CBDCs based on the experience of other jurisdictions around the world.
She also warned that the issuance of the digital ruble could lead to some “serious consequences” including changes in the financial market structure such as deposit outflows. The popularity of cryptocurrencies in Russia has dropped over the past two years. However, some people still believe in the possibility of private money without government involvement,
“We are against private money. If some digital currencies were designed to become a substitute for private money, we could not support that.”