Nabiullina said that blockchain is still a developing technology, but it does indeed “have a space in Russia’s financial matters” and will definitely be an active player in the national push for the digitalization of the economy.
The head of Russia’s central bank mentioned that using the technology as a whole, in terms of national currency, could indeed work but when it comes to individual assets then there could be some major mishaps. Nabiullina didn’t touch on the upcoming cryptocurrency regulation in the country, but according to her statements, it’s safe to assume that she is a staunch supporter of the new sandbox. The injection of cryptocurrencies in the Russian economy is not as revolutionary as one may think.
Mining farms are popular in Russia and a lot of the country’s citizens are in possession of various crypto assets; therefore, should the bank somehow accommodate these investors, it would surely garner some attention.
Last month, Nabiullina said that the Bank of Russia may explore the possibility of creating gold-pegged crypto for performing mutual settlements with international laws.
“As far as settlements are concerned, we will consider your suggestion regarding what a cryptocurrency backed by gold would look like [in this setup],” she told a state committee.
In April, the Bank of Russia published a policy summary on the probable advantages and cons of central bank digital currencies (CBDCs). As per the central bank, CBDCs may bring down the risk and offer more liquidity that can probably bring down the overall transaction costs. On the contrary, the bank highlighted CBDCs lack of privacy as probably the only disadvantage in comparison with fiat money.