The Central Bank of Russia will support the ban of cryptocurrency as a mode of payment.

The Central Bank of Russia has revealed that it would support the idea of banning cryptocurrencies as a mode of payments in the country.

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According to the local news reports, The Central Bank of the Russia supports the idea of prohibiting paying with cryptocurrency if such legislative decision is proposed. The central bank of the country has clarified that the cryptocurrency can not be the legal tender in the country.

 

“Ruble is the only legal tender in the Russian Federation.”

The central bank in a statement said that the ruble is the only legal tender in the Russian Federation and they continue to believe that the cryptocurrencies carry significant risks, including in the field of laundering of proceeds from crime and financing of terrorism, as well as in conducting exchange transactions due to price volatility.

 

The legal status of cryptocurrencies is still in a grey area.

The legal status of cryptocurrencies, smart contracts, ICOs, and mining is Russia is in a grey area. Currently, there are no laws in the country that outlaws the use of cryptocurrencies. Cryptocurrencies that are based on blockchain platforms like Bitcoin and Ethereum or coins like IOTA that are not based on the blockchain network are all in the grey area.

The central bank of Russia in the past has strongly condemned the use of private or decentralized cryptocurrencies. However, the bank is considering to issue its own central bank-backed digital currency.

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Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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