Russia’s Central Bank to Create Its Own Cryptocurrency Instead of Legalizing Bitcoin

News and Analysis

Elvira Nabiullina, the head of Russia’s Central Bank, has once again spoken against legalization of cryptocurrencies in Russia, however, she conceded that they could create a national digital currency based on blockchain technology.

“We don’t deem it appropriate to legalize cryptocurrencies at Russian exchanges, and we don’t endorse its legalization as a legal tender. Yet, we see the promise of the blockchain technology that underlies it,” she stated.

The regulator is weighing on creating a platform to send financial messages and register transactions that would employ the distributed ledger technology. The Central Bank also considers creating a blockchain-based national currency.

“We’re discussing the issue of creating a national digital currency that could use blockchain. It’s a national, not a private currency. We know that many central banks talk about it around the world. The process is at the research phase right now, so it’s too early to draw any conclusions,” Nabiullina noted.

Earlier she stated that “the cryptomania is dangerous” and digital currencies have features of a Ponzi scheme. She also suggested that legalization of cryptocurrencies could end the government control over money flows from abroad.

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