{"id":4968,"date":"2022-01-21T03:41:43","date_gmt":"2022-01-21T03:41:43","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/01\/21\/bank-of-russia-calls-for-ban-of-cryptocurrencies\/"},"modified":"2022-01-21T03:41:43","modified_gmt":"2022-01-21T03:41:43","slug":"bank-of-russia-calls-for-ban-of-cryptocurrencies","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/01\/21\/bank-of-russia-calls-for-ban-of-cryptocurrencies\/","title":{"rendered":"Bank of Russia calls for ban of cryptocurrencies"},"content":{"rendered":"

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Russia\u2019s central bank today proposed a ban on the use and mining of cryptocurrencies, saying they pose a threat to the county\u2019s financial stability and people\u2019s wellbeing.<\/p>\n

For a long time now, Russian politicians have talked about how such digital currencies could easily be used to launder cash or for terrorism, although in 2020 the country gave cryptocurrencies legal status \u2013 with still a ban on them for being used as payments. Russia is actually the third largest country for Bitcoin mining, only behind the U.S. and Kazakhstan. Like the U.S., Russia worries that the rise of such currencies could undermine the financial system. Several countries, including China, have already put a total ban on them.<\/p>\n

\u201cThe breakneck growth and market value of cryptocurrency is defined primarily by speculative demand for future growth, which creates bubbles,\u201d the central bank said in a lengthy report issued today. \u201cCryptocurrencies also have aspects of financial pyramids, because their price growth is largely supported by demand from new entrants to the market.\u201d<\/p>\n

The head of the central bank\u2019s financial stability department, Elizaveta Danilova, said that if the ban becomes a reality, it wouldn\u2019t mean Russians can\u2019t hold cryptocurrencies outside of the country, but if they did, there would be stringent monitoring mechanisms in place.<\/p>\n

\u201cWe consider it very important to ban using Russian financial infrastructure to obtain cryptocurrency,\u201d she said, as reported by the Financial Times<\/a>. \u201cWe think this will help remove a significant part of the risks and ensure that cryptocurrency won\u2019t be so popular.\u201d She said in order to make this happen there would have to be more mechanisms introduced that automatically block people making transactions with virtual currencies.<\/p>\n

This would mean cryptocurrencies exchanges being banned, even though it\u2019s estimated that Russians did $5 billion in crypto transactions in 2020. The bank said that it would have to work with foreign exchanges to see what Russian holders are doing with their coins.<\/p>\n

The report also said that mining in itself creates more demand for crypto services, while also creating \u201ca non-productive electricity expenditure, which undermines the energy supply of residential buildings, social infrastructure, and industrial objects, as well as the environmental agenda of the Russian Federation.\u201d<\/p>\n

Photo: Art Rachen<\/a>\/Flickr<\/h5>\n
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