Russian Deputy Finance Minister: Country Won’t Block Or Limit Facebook’s Libra
After Facebook decided that its Libra cryptocurrency would not be launched in India due to local legislation that forbids cryptos from working there, everybody kept asking what would be the next country in which Facebook’s Libra coin would not be welcome. It seems that the country is not Russia.
Libra, in case you have been sleeping in a cave for the last couple of weeks, is Facebook’s upcoming stablecoin. The cryptocurrency will have a stable price, which will be pegged to a basket of fiat currency assets and managed by the Libra Association.
Alexei Moisseev, the Russian Ministry of Finance, has recently affirmed that nobody is going to ban Libra whenever it is launched. However, the country will also not issue any kind of special regulation for it, too.
Libra will be treated just like any other digital asset in Russia and it will have to follow the same rules, according to the deputy minister. The main problem here is that cryptocurrencies are far from being in a completely legal area in Russia. The country is notorious for its uncertain stance on cryptos.
According to Moisseev, the ruble is the national currency of Russia, so all operations should be using it instead of digital tokens. In the country, digital currencies have a pretty similar status to foreign fiat currencies. You can buy and sell them whenever you want, but they are not really used to buy goods within the country.
Facebook is not the leading social media platform in Russia, but it has 39% of the market share, which is a very significant presence. Because of this, Libra will certainly have a real effect in the country if it is really allowed to be launched.
New Crypto Legislation Is Coming In Russia… For A Long Time
During the interview in which he talked about Libra, Moisseev also affirmed that a new law that would regulate Initial Coin Offerings (ICOs) would be coming soon. According to him, the government has been in discussions about this with the central bank and law enforcement agencies.
However, you should not get your hopes up as the Russian government is struggling with this issue for a long time. Ever since 2017 the country is speaking about creating a law that would regulate crypto assets, but that never seems to actually happen.
Even when promises were made, the government eventually backed down, so it is very optimistic to expect that everything will be regulated this year.