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Russia’s Finance Ministry Supports Circulation of Stablecoins in Country

Russia’s Finance Ministry Supports Circulation of Stablecoins in Country – According to Ivan Chebeskov, director of the ministry’s Financial Policy Department, the Russian Federation’s Ministry of Finance (Minfin) is generally in favor of allowing stablecoins to be used in the country. The senior official made the declaration at the Russian Creative Week panel discussion, “The Influence of Web3 – New Era of the Internet of Trust?”

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Chebeskov said that Minfin approaches the problem from the standpoint of Russian entrepreneurs. We would always support such initiatives, he added, “if there is a need for enterprises, companies, or investors to settle, invest in a new way, if they require such a tool, since it cuts costs, works better than prior tools, and if we can limit the dangers connected with it.”

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According to a government representative quoted by RBC Crypto, there may be a chance to create a whole new financial system thanks to blockchain in general, crypto assets, digitization, and tokenization. Chebeskov added, “But one cannot be absolutely certain that it will be able to perform better than the existing financial systems.”

In an effort to close the regulatory gaps left by the law “On Digital Financial Assets,” the Russian finance ministry has been a driving force behind efforts to legalize cryptocurrency operations in Russia. Earlier this year, the ministry submitted a new bill titled “On Digital Currency.” When it became effective in January 2021, the latter only partially regulated cryptocurrency matters.

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On the other side, the Central Bank of Russia has consistently opposed permitting cryptocurrency transactions in the nation, while also creating a digital ruble and recommending a broad ban on all crypto-related operations. 

Governor Elvira Nabiullina recently stated that the regulator could consent to small-scale cryptocurrency payments in international settlements amid intensifying Western sanctions against Russia, which marked a recent change in the regulator’s stance.

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Despite the collapse of the terrausd (UST), which resulted in a severe market downturn and a loss of faith in stablecoins, Chebeskov made the statement. Anatoly Aksakov, the head of the legislative Financial Market Committee, recently referenced the state of the cryptocurrency market in stating that the future law, which has undergone numerous amendments this year, will be difficult.

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