11 October 2019
SOCHI, 11 October – PRIME. The central banks’ digital currencies pose risks for the financial system, stated Governor of the Bank of Russia Elvira Nabiullina at the Forum of Innovative Financial Technologies FINOPOLIS 2019.
“We need to develop convenient services for people. Nevertheless, the Bank of Russia sees high risks in cryptocurrencies. Many of them are designed as a replacement for fiat money, and here we see risks for monetary policy, its stability,” said Elvira Nabiullina.
To meet people’s needs for convenient means of payment, many central banks consider issuing their digital currencies, the Head of the Russian regulator reminded.
“This is not an obvious solution for the Central Bank of the Russian Federation. We see high risks here. The central banks’ issuing digital currencies can have a major impact on the banking system in general, a two-tier banking system, if, in essence, people would be able to deposit money to the central bank that does not issue money,” she explained.
“Our policy is to develop the services that people seek, and if they are available, people will reach out for cryptocurrencies less. We, as the Central Bank, are building the infrastructure so that all participants can develop these services,” the Head of the Bank of Russia concluded.
The legal status of smart contracts, cryptocurrencies, ICOs, and mining has not yet been determined in Russia. In 2018, the State Duma received three bills intending to eliminate this gap and, in general, regulate the digital economy. So far, only two of them have been adopted: the amendments to the Civil Code regarding digital rights and the law on raising funds through investment (crowd funding) platforms.