Select Page

Russia’s Central Bank Is Now Testing Real Asset-Pegged Stablecoins

Russia’s Central Bank Is Now Testing Real Asset-Pegged Stablecoins

Authored by Helen Partz via CoinTelegraph.com,

The Bank of Russia, the country’s central bank, has reportedly started testing stablecoins pegged to real assets in a regulatory sandbox.

image courtesy of CoinTelegraph

Elvira Nabiullina, Russia’s central bank head, said that the bank doesn’t assume that those stablecoins will function as a means of payment or become a substitute for money, Russian news service Interfax reported on Dec. 25.

Nabiullina noted that the Bank of Russia is exploring the potential uses of stablecoins — cryptocurrencies that are pegged to another asset to prevent the volatility associated with crypto markets. She said:

“We are testing stablecoins in our regulatory ‘sandbox’. We see companies willing to issue tokens pegged to certain real assets. In our regulatory sandbox, we are learning the potential uses of stablecoins but we do not assume that they will function as a means of payment and become a surrogate for money .”

The Bank of Russia also wants to explore CBDCs based on global experience

According to the report, the Russian central bank is also continuing to explore the possibility of issuing its own central bank digital currency (CBDC), the digital ruble, Nabiullina said. The official emphasized that the bank first wants to understand the potential benefits of CBDCs based on the experience of other jurisdictions around the world.

However, Nabiullina warned that the issuance of the digital ruble could lead to some “serious consequences” including changes in the financial market structure such as deposit outflows.

Nabiullina says cryptocurrencies in Russia have lost popularity over the past 2 years

Additionally, the head of Russia’s central bank noted that the popularity of cryptocurrencies in Russia has dropped over the past two years. However, there are people who still believe in the possibility of private money without government involvement, Nabiullina said. Regarding this issue, the official claimed:

“We are against private money. If some digital currencies were designed to become a substitute for private money, we could not support that.”

The recent news comes in line with earlier public announcements from the Bank of Russia. As such, Nabiullina said that the bank was exploring the opportunity to launch a CBDC in June 2019. However, the authority didn’t expect to roll out such initiatives in the near future, as reported at the time.

While Russia is planning to follow other countries in testing their CBDCs, France recently revealed its intention to become the first global jurisdiction to pilot its own digital euro project. On Dec. 4, François Villeroy de Galhau, the governor of the Bank of France, announced that the bank will start testing the digital euro project by the end of the first quarter of 2020.


Tyler Durden

Fri, 12/27/2019 – 05:00


This post has been republished with permission from a publicly-available RSS feed found on Zero Hedge. The views expressed by the original author(s) do not necessarily reflect the opinions or views of The Libertarian Hub, its owners or administrators. Any images included in the original article belong to and are the sole responsibility of the original author/website. The Libertarian Hub makes no claims of ownership of any imported photos/images and shall not be held liable for any unintended copyright infringement. Submit a DCMA takedown request.

-> Click Here to Read the Original Article <-

About The Author

Tyler Durden

Zero Hedge's mission is to widen the scope of financial, economic and political information available to the professional investing public, to skeptically examine and, where necessary, attack the flaccid institution that financial journalism has become, to liberate oppressed knowledge, to provide analysis uninhibited by political constraint and to facilitate information's unending quest for freedom. Visit https://www.zerohedge.com

Leave a reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Welcome

Bringing together a variety of news and information from some of today’s most important libertarian thought leaders. All feeds are checked and refreshed every hour and pages auto-refresh every 15 minutes. External images are deleted after 30 days.

Time since last refresh: 0 second

Publish Your Own Article

Follow The Libertarian Hub

 

Support Our Work

Support the Libertarian Hub by tipping with Bitcoin!

Weekly Newsletter

Newsletter Signup

Subscribe to our newsletter to receive a weekly email report of the top five most popular articles on the Libertarian Hub!

Weekly Newsletter SignupTop 5 Stories of the Week

Subscribe to our newsletter to receive a weekly email report of the top five most popular articles on the Libertarian Hub!