The Bank of Russia Maintains Its Cryptocurrency Ban Attitude As It Begins To Test The Country’s CBDC.
The Bank of Russia has begun testing for its own CBDC. The news corresponds with the central bank’s plans to begin the pilot phase of the CBDC project in early 2022.
Despite President Vladimir Putin’s demand that his government and the Bank of Russia develop an unified legislative regime for crypto assets rather than outright bans, no agreement has been achieved.
The Central Bank of Russia has announced the completion of the first round of testing for its central bank digital currency (CBDC), often known as the “digital ruble.”
On Tuesday, the Bank of Russia stated that testing of the CBDC had commenced, with the first digital ruble transactions between people already taking place.
Three of the twelve banking firms taking part in the Bank of Russia’s CBDC pilot program have already adopted the digital ruble. According to two of them, they even carried out a “full cycle of digital ruble transfers between clients using mobile banking applications.”
Before transferring tokens to other customers, clients must first open wallets on the CBDC network utilizing mobile applications, as well as convert their non-cash fiat money into the digital ruble.
The second phase will include testing digital ruble payments for products and services, as well as smart contract installations and collaboration with the Federal Treasury.
The news comes amid claims that the Bank of Russia actively rejected the Finance Ministry’s proposal for crypto-friendly legislation, which was presented on February 8.
The governor of the Bank of Russia, Elvira Nabiullina, stated in a news conference on Friday that the authority would continue to prevent cryptocurrency adoption in Russia by whatever means necessary, saying:
“We will spare no effort to convince the government and go into more detail about our arguments because we see significant risks. I’m counting on common sense here.”
While the Russian government continues to create a regulatory framework for digital assets, a state body has offered another recommendation for the crypto mining industry.
According to Izvestia, a local news outlet, Russia’s Ministry of Economic Development has accepted the idea of crypto mining regulation in the nation, proposing to allow mining activities in regions with “sustainable surplus in electricity generation.”
As part of the proposal, the ministry recommended cheaper prices for constructing mining farms and data centers in specific Russian areas, as well as lower energy rates for such facilities.
The government also aims to enforce a power consumption restriction on each mining operation, allegedly proposing higher energy prices in return for increased energy investment.
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