The head of the Central Bank of Russia, Elvira Nabiullina, while speaking in Duma, confirmed that they are actively studying how various digital currencies pilots are working in other countries. However, the central bank stands against the issuance of private cryptocurrencies.
A statement put out by the country’s central bank read that issuing private currencies could damage the monetary policy and threaten the financial stability of the country. However, the Central Bank’s head confirmed that they are considering to issue a state-backed cryptocurrency.
Председатель Банка России Эльвира Набиуллина на заседании Совета Федерации расскажет о развитии финансового рынка. https://t.co/yCZbSg96yx
— Банк России (@bank_of_russia) November 6, 2019
Russia is a key player in the crypto industry.
Recently, when Binance CEO Changpeng Zhao visited Russia for the first time, he said that Russian Vladimir Putin would have the most influential role in the near future of the crypto industry. He was referring to a crypto bill that is pending in the Russian parliament. However, the Central Bank of Russia has no plans of legalizing the use of cryptocurrencies any time soon.
China is expected to launch its Central Bank-backed digital currency any time soon. As reported earlier, Turkey has also joined the list of countries that are planning to issue CBDCs.
CBDC: Governments’ weapon to fight bitcoin?
Many countries are studying stablecoins and planning to launch their state-backed cryptocurrencies. A CBDC is a perfect way for countries like China and Russia to keep track of people’s financial activities as they are completely centralized. On the other hand, bitcoin provides people with financial privacy that does not settle well with countries who like mass surveillance. It is expected that in several countries around the world would issue their own cryptocurrencies in coming years to keep people off from decentralized currencies like bitcoin