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Russia considering a gold-backed centralized cryptocurrency

russia testing cryptocurrency in regions

According to RIA- the national news agency, the central bank of Russia might be making an allowance for a gold-pegged cryptocurrency. On the other hand, the national bank claims that cybernetic currency will not act as an alternate for Russian Ruble.

The bank implied that Russian lower house welcomed the idea of a stablecoin backed by gold which might appear internationally after mutual agreement.

Answering to a question from a politician Elvira Nabiullins – the head of Russian National Bank stated that the bank would reflect house’s suggestion of crypto tangled with gold for the reciprocated settlement however he emphasized on the need of developing settlements in national currencies.

Russia has been especially doubtful towards the cryptocurrency industry. Though, last year, it started struggling to normalize this sector, replicating other states like Japan, Malta, etc.

According to previous reports, the Russian parliament proclaimed its aims of legalizing crypto industry at the start of 2018’s Q3. In 2019, Russian President, Vladimir Putin gave another target (July 2019) for the assembly to make laws about the control of virtual currency.

The Sr. market expert Mati Greenspan used Twitter to comment on the recent news;

Elvira is in view of presenting a stablecoin, as it will not be as unpredictable as bitcoin because of its backing by a more protected resource. However, he did not refer to the coin that would be tied to gold.

The optimistic statement from Elvira came with a renunciation. He stated that the watchdogs were reviewing stablecoins which can be held in the bank’s supervisory sandbox, but the bank is not eager to add cryptocurrency to the country’s financial system.

Furthermore, the bank does not see this prospect for cryptocurrencies to achieve the function of monetary replacements here.

Elvira’s remarks echo a former statement made by the head of Duma’s Interagency Taskforce for Cryptocurrencies – Elina Sidorenko, who stated that Russia was not prepared to syndicate virtual currencies with its customary financial system.

Recently, Vladislav Ginko – an economist and lecturer applied that improved U.S. sanctions might drive Russia to invest in bitcoin, which might happen quickly.

But after a few days of Ginko’s remarks, opponents held that the Russian economist testimonial was deficient in proof.

Kremlin official, Elina Sidorenko, stated that Ginko’s statement lacked reasonableness and is away from the ideas reflected in the government.

Aroosa Nadeem

Aroosa Nadeem

A media graduate and passionate media person Aroosa has a knack for digital media journalism and outreach. She has contributed content to different digital media publishers in a variety of areas including technology, health and finance.

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