In a recent development, the Bank of Russia has declared that it has started testing stablecoins in the regulatory sandbox.
The Head of the Central Bank, Elvira Nabiullina, remarks that the financial regulator through the Sandbox is observing how stablecoins can function, regardless the bank expects that this kind of digital asset will not work as a method of payment or become a cash substitute. Nabiullina said that,
“Now, such an opportunity is being actively discussed by many countries; we are also at the stage of studying this topic. First of all, you need to understand what will be the benefits for our citizens, for business, for example, compared with the option when we develop fast payment systems, expand their use not only for settlements between individuals but also between legal entities.”
Regulatory sandboxes can be explained as a unique set of rules that permits creative organizations to test their products and services in a constrained environment without breaking or risking financial laws.
Besides, Nabiullina clarified that this kind of digital asset would not become a substitute for traditional money. In any case, many feel that the inclination to conduct these types of tests may be considered as a positive sign for the future of cryptocurrency in Russia.
Indeed, it was expected that the Bank of Russia might continue to follow China’s example, and possibly even make its own cryptocurrency in the future. Moreover, Nabiullina proceeded to include that similar possibilities are being examined in nations around the globe, so Russia chose that studying stablecoins is something that they need to do, as well.
Needless to say, cryptocurrencies are neither viewed as legal in Russia nor being used for paying goods and services online. Besides, Russia already has freelancers who acknowledge cryptocurrency as a payment for their work.
Besides, the nation’s regulators understood that they needed to formulate specific regulations to curb illegal activities, which the regulators around the world face. Furthermore, the Bank of Russia supported the possibility of the ban, but it has not shown up yet.