According to a high ranking representative of the Russian Finance Ministry, they are prepared to legalize stablecoin transactions in the country. The ministry is well-aware of the fact that cryptocurrencies can help in laying the foundation for a new financial system. However, they are uncertain of whether it will be better than the existing one or not.
The Ministry of Finance in Russia is open to the idea of authorization stablecoin circulation in the country. The Financial Policy Department’s director Ivan Chebeskov was attending the Russian Creative Week and spoke at a panel focused on Web3.
The top official stated that the Minfin was looking at the stablecoin issue from the viewpoint of entrepreneurs in Russia. He said that they would support initiatives that would allow companies, business and investors to make settlements in a new way. Chebeskov asserted that they would support such a tool if it works better than others, reduces costs and it is also possible to control and mitigate the risks associated with it.
New financial system
As a matter of fact, the government official went as far as saying that not just crypto assets, but blockchain technology, tokenization, and digitalization could also provide an opportunity of setting up a completely new financial system in the country. However, he added that there was no way to predict if it would be able to operate in a better way than the existing one.
Russia’s Ministry of Finance has been making a great deal of effort in legalizing crypto operations in the country. Earlier this year, the Minfin put forward a new bill named ‘On Digital Currency’ in the lower house of the parliament. This new law is aimed at filling the regulatory gaps and holes that were left behind by the law named ‘On Digital Financial Assets’. This is the term used to refer to crypto assets in Russia and it was put into effect in January last year, partially regulating the crypto space.
The Central Bank of Russia (CBR)
However, it is important to note that despite the pro stance of the Minfin, the Central Bank of Russia (CBR) has mostly maintained a strong opposition against crypto legalization in the country. It went as far as proposing a blanket ban on digital assets and is working on developing a digital ruble.
But, it did soften its opinion a bit recently, as the governor of the Russian central bank, Elvira Nabiulla said that they could accept allowing crypto payments internationally on a small scale. This was in light of the sanctions imposed by Western nations due to its conflict with Ukraine.
The statement from Chebeskov in Russia comes after the collapse of the TerraUSD (UST) stablecoin, which reduced investor confidence in stablecoins and resulted in a market slump. Anatoly Aksakov, the head of the Financial Market Committee of the parliament, recently asserted that they would introduce ‘tough’ crypto regulation in the country in light of the market turmoil and the subsequent problems people had had to face.
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