Russia’s central bank moves to ban investment in cryptocurrencies

Reuters reports that the Russian central bank would like to ban investments in cryptocurrencies in Russia.

Russia’s central bank sees risks to financial stability in the rising number of crypto transactions, the report added.

Russia for years spoke against cryptocurrencies, saying they could be used in money laundering or to finance terrorism. It eventually gave them legal status in 2020 but banned them from being used as a means of payment.

The central bank is now in talks with market players and experts about the possible ban, which, if approved by lawmakers, may apply to new purchases of crypto assets but not to those bought in the past.

Russia central bank’s current position is a “complete rejection” of all cryptocurrencies, Reuters says.

The annual volume of transactions with cryptocurrencies that Russians carry out is about $5 billion, according to the central bank.

Meanwhile, the Bank of Russia is planning to issue its own digital rouble, joining the global trend to develop digital currencies to modernise financial systems, speed up payments and counter a potential threat from other cryptocurrencies.

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