- Russia presently has a ban on cryptocurrency use within their borders.
- Recently, the Soyuzmash vice president stated that cryptocurrency could be a solution to the difficulties involving US sanctions.
The battle between the Russia and the US sanctions have been difficult, which Soyuzmash Vice President Vladimir Gutenev admits.
Speaking to the advisory council on military-technical co-operation, the vice president expressed that the current conditions were difficult, and the environment is far from competitive, thanks to the strong pressure from sanctions. Despite weapons already being delivered, the payment for them could ultimately be delayed for months.
Soyuzmash, which is being supported by the State Duma defense commission, believes that the use of Bitcoin could help with some of these difficulties. However, the big problem that arises is that the Russian Central Bank has been very clear about cryptocurrency – they are not legalizing it.
One of the big concerns that the authorities have about Bitcoin is the potential for being used for purchasing illegal items through the dark web. The idea that Bitcoin could be used for arms deals is, at minimum, ironic. Presently, Russia is the second-largest exporter of weapons in the entire world, only falling behind the USA.
So far, Gutenev has talked with Elvira Nabiullina, the Central Bank Chief, about this matter. One of the other ideas that Gutenev brought up was the use of a stablecoin, as an effort to appeal to the Central Bank more. Even though the policies haven’t changed, and the State Duma is still deeming Bitcoin illegal, it appears that Nabiullina is considering this option.
In the past, suggestions of a crypto-ruble launch have been put on hold indefinitely, and the legislators appear to just be sitting back to watch how the cryptocurrency industry works out with other counties. On July 25th, the regulation of cryptocurrency was discussed by a panel of Russian officials and experts at the “Parliamentary Newspaper” press conference center.
According to the experts, the use of cryptocurrency is more of a far-off notion than a present concern.
The Russian constitution prohibits the issuance of any other money apart from the ruble, and financial regulators are still confused over the how Bitcoin was created in the first place. Like many opponents, the regulators are also worried that criminals would ultimately stand to benefit greatly from the legalization of cryptocurrency.
This round table was moderated by the first deputy chairman of the Council of Federation Committee on Constitutional Legislation and State Building, Senator Lyudmila Bokova. Bokova stated:
“I consider it expedient not to force the [regulatory] process, but to analyze the experience of bigger economies. Let’s see how regulation is implemented there and what benefits or damage a country might receive from the introduction of such regulation.”
The guests included:
- Dmitry Zakharov, of the Commission for the Legal Support of the Digital Economy of the Association of Lawyers of Russia
- Mikhail Bykovsky, of the “Fintech” working group under the Center for Competence on the Digital Economy
- Arseny Poyarkov, of the National Association of the Digital Economy
The full event can be viewed here:
The first step towards developing the legal framework around cryptocurrencies has already been made after the lawmaker’s passed the “digital assets” law.
Unfortunately, the bill doesn’t let these types of currencies be used alongside the fiat currency, and cryptocurrency mining remains illegal.