The Russian Finance Minister Supports The Legalization Of Stablecoin Transactions.

According to a high-ranking government official, the Russian Ministry of Finance (Minfin) is ready to back the legality of stablecoin transactions in Russia.

According to a July 7 article by Russian site bits.media, the head of the Financial Policy Department at the Russian Federation’s Ministry of Finance, Ivan Chebeskov, stated that the ministry favors allowing the circulation of stablecoins in the country.

The senior official made the remark while taking part in a discussion titled “The Influence of Web3 – New Era of the Internet of Trust?” during the Russian Creative Week.

Chebeskov stated that Minfin views the issue from the perspective of Russian business owners.

“If there is a need for businesses, companies or investors to settle, invest in a new way, if they need such a tool, because it reduces costs, works better than previous tools, and if we can limit the risks associated with it, we will always support such initiatives,”

According to RBC Crypto, the government official also stated that blockchain technology in general, as well as crypto assets, digitalization, and tokenization, may provide an opportunity to build a whole new financial system.

It is worth noting that the ministry is aware that cryptocurrencies have the ability to pave the way for a new financial system, but they are unsure whether this new system will be preferable to the current one.

Chebeskov said:

“But one cannot be completely sure that it will be able to work better than the existing financial systems,”

The Russian finance ministry has been a driving force behind efforts to legitimate cryptocurrency activity in the country. It submitted a new bill this year, “On Digital Currency,” to close regulatory gaps left by the statute “On Digital Financial Assets.” The latter partially regulated cryptocurrency in January 2021.

The Central Bank of Russia, on the other hand, has maintained a steadfast opposition to the idea of allowing cryptocurrency transactions within the country’s borders, even as it works to build a digital ruble and has recommended a blanket ban on cryptocurrency-related businesses.

Only recently has it begun to show signs of sanity, with Governor Elvira Nabiullina saying that the regulator would permit small-scale cryptocurrency payments in international settlements. This comes as Western sanctions on Russia become increasingly stringent.

Despite the fact that the Terra (LUNA) ecosystem’s infamous algorithmic stablecoin TerraUSD (UST) crashed in May, resulting in a large market decrease and loss of faith in stablecoins, Chebeskov made this comment.

Anatoly Aksakov, the legislative Financial Market Committee’s leader, recently made a reference to the current condition of the cryptocurrency market when he warned that the future law, which has been subjected to numerous rounds of changes this year, would be “tough.”

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