According to a senior government official, the Russian Ministry of Finance (Minfin) is willing to back the legitimacy of stablecoin-based transactions in Russia.
According to a story published on July 7 by the Russian outlet bits.media, Ivan Chebeskov, the director of the Financial Policy Department at the Russian Federation’s Ministry of Finance, stated that the ministry supports allowing the circulation of stablecoins in the country.
Chebeskov noted that Minfin views the situation from the perspective of Russian business owners.
“We would always support such initiatives”, he said, “if there is a need for enterprises, companies, or investors to settle, invest in a new way, if they require such a tool, since it cuts costs, works better than prior tools, and if we can limit the dangers associated with it.”
Using Cryptocurrencies Could Help Create a New Financial System
RBC Crypto also cited the government source as adding that blockchain technology in general, along with cryptocurrency assets, digitalization, and tokenization, would give a chance to create a totally new financial system.
It’s important to note that the ministry is aware of the potential for cryptocurrencies to usher in a new financial system, but they are unsure as to whether or not this new system will be superior to the one that is now in place.
However, Chebeskov cautioned, “One cannot be absolutely certain that it would be able to function better than the current financial systems.
An important driving force behind efforts to legalize cryptocurrency activity in Russia has been the Russian finance ministry. To close regulatory gaps left by the law “On Digital Financial Assets,” it proposed a new measure this year titled “On Digital Currency.” This latter partially regulated cryptocurrency in January 2021.
Uncertainty of Bank of Russia’s Position on Cryptocurrency
While simultaneously striving to establish a digital ruble and proposing a broad ban on cryptocurrency-related activities, the Central Bank of Russia has maintained a steadfast opposition to the idea of allowing cryptocurrency transactions within the country’s borders.
It wasn’t until recently that it started to exhibit indications of moderation, with Governor Elvira Nabiullina expressing a possibility that the regulator would permit modest crypto payments in international settlements. This occurs as Western sanctions on Russia ratchet up in intensity.
Chebeskov made this statement despite the fact that the famed algorithmic stablecoin TerraUSD (UST) of the Terra (LUNA) ecosystem crashed in May, leading to a sharp market slump and a loss of confidence in stablecoins.
The head of the legislative Financial Market Committee, Anatoly Aksakov, previously warned that the upcoming bill, which has undergone numerous rounds of revisions this year, will be “difficult,” in reference to the situation of the cryptocurrency market at the time.