The Central Financial institution of Russia’s (CBR) first deputy governor has mentioned that blockchain expertise just isn’t the “common resolution,” many promised it might be 5 years in the past.
In an interview with Euromoney on April 2, Olga Skorobogatova took a deep dive into the financial institution’s initiatives, sandboxes, and experiences with blockchain deployment.
Following three years of experimenting with the Masterchain platform — a neighborhood blockchain-based community for transferring invaluable monetary knowledge like mortgage accounting — Skorobogatova mentioned, “Blockchain is a superb match for issues like letters of credit score and ensures as a result of it’s basically a expertise of belief.”
Nevertheless, she additional added that blockchain just isn’t the cure-all that many believed it might be:
“I bear in mind being advised by some tech corporations again then: ‘Olga, in 5 years every little thing shall be powered by blockchain, there shall be no different applied sciences.’ I responded that this expertise would work in circumstances when it might create further worth however not as a substitution for every little thing. Time has confirmed me proper.”
However what about cryptocurrencies?
Skorobogatova mentioned she doesn’t consider in cryptocurrencies as a method of fee as they pose main dangers for patrons. She famous cryptocurrencies’ excessive volatility, lack of assure for financial savings, and utilization in cash laundering as main threats.
The deputy governor famous that the central financial institution is in talks with different regulators on the problem of world stablecoins, stating that, at this level, stablecoins increase extra questions than solutions.
The CBR has flirted with the concept of a nationwide digital forex, which Skorobogatova questions as properly:
“For me, the massive query is that if there may be any added worth in utilizing central financial institution digital currencies (CBDCs) – for the economic system, for people and for companies. Clearly, folks need quick digital funds, however this may be applied with a nationwide quick funds platform. What can CBDCs carry to the desk? To date, nobody in Russia or elsewhere has been in a position to give a convincing reply and even to clarify the distinction between digital funds and CBDCs.”
Russia’s latest method to crypto and blockchain regulation
In the meantime, Russia has postponed its invoice “On Digital Monetary Belongings” but once more. Anatoly Aksakov, chairman of the Russian State Duma Committee on Monetary Markets and chairman of the Nationwide Banking Council on the CBR, admitted that earlier delays within the invoice’s adoption have been attributable to disagreement on the brand new asset sort between native authorities.
Aksakov mentioned that the central financial institution opposed the legalization of crypto whereas the State Duma advocated some crypto initiatives.
On March 24, the Ministry of Financial Growth of Russia reportedly ready a draft legislation that might enable the testing of cryptocurrency and blockchain developments inside a particular regulatory sandbox.