Russia can legalize cryptocurrency mining and gold-backed stablecoins under government control, a senior member of the Russian parliament has suggested. The statement comes after the Bank of Russia proposed an extensive ban on the use of cryptocurrencies, their trading and mining.
Mining and some stablecoins can be legalized in Russia, Duma MP insists
The free circulation of cryptocurrencies should not be allowed as they carry risks for unqualified investors, but Russia may allow the use of gold-backed stablecoins and the mining of cryptocurrencies under government control , said the chairman of the State Duma Committee on Industry and Trade, Vladimir Gutenev, told the RIA Novosti news agency.
On Thursday, the Central Bank of Russia (CBR) released a consultation paper in which it presented its comprehensive view on cryptocurrencies. The monetary authority has proposed banning coin operations through the Russian financial system, crypto investments, exchanges, and mining in the country. In the meantime, the bank has launched the pilot phase of its own digital ruble project.
Cryptocurrencies should be banned, Gutenev agreed, but Russia could use a gold-denominated, state-controlled stablecoin. Such a financial product would be an attractive proposition for both private investors and companies. It can also be used for savings, the MP said, as quoted by business news portal Prime.
The gold-backed stablecoin could be similar to a golden rouble, the parliamentarian explained, and Russia can use it to circumvent the sanctions and containment policy applied against the country. The coin can also be used to facilitate regular and transparent economic relations with other nations.
Gutenev revealed that he had already discussed the idea with CBR Governor Elvira Nabiullina. The head of the Industry and Commerce Committee believes that as an asset, gold is quite undervalued compared to reserve fiat currencies such as the US dollar and the euro.
In October, the Foreign Ministry said that Russia may consider partially replacing the greenback in foreign exchange reserves and trade settlements with other currencies, and even digital assets in the future. Amid expanding US sanctions, Moscow is emphasizing “dedollarization”, Deputy Foreign Minister Alexander Pankin said in an interview with Interfax.
Commenting on the Bank of Russia’s call for a ban on crypto mining, Vladimir Gutenev said he believed cryptocurrency farms could be allowed to operate legally if their activities were under the strict control of the state. Miners can take advantage of the abundant energy resources and favorable climatic conditions in some Russian regions, as long as their facilities are supplied transparently and they pay all due taxes.
A working group in the State Duma, the lower house of parliament, is currently preparing proposals to close regulatory gaps in the Russian crypto space that remain after the passage of the “Digital Financial Assets” law. Its members are expected to resolve outstanding issues in several areas, including the legal status of cryptocurrencies, coin trading, and mining. The media revealed that not all government institutions share the intransigent position of the Bank of Russia on the issue.
Do you think Russia will allow the use of stablecoins and allow cryptocurrency mining? Share your expectations in the comments section below.
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