The governor of Central Bank of the Russian Federation, Elvira Nabiullina, while addressing the State’s Duma told the Russian lawmakers that the institution is contemplating developing a gold-pegged Crypto.
This is according to a report from a Russian news agency known as TASS that reveals that the highest bank in Russia is reviewing a proposal for deploying a gold-backed Digital Token.
Elvira additionally said that the new gold-stable-Token will be used for mutual settlements of payments for transactions between Russians and their global partners.
Further, she stressed the importance of the country to develop a solution for “…settlements in national currencies…” which could be a hint that the said Digital currency could either be a legal tender or a hybrid version of the local Rubble currency.
The Proposal Is Placing Russia On A Path Towards Developing A National Currency
At the time being, there is a heated debate on the risks and opportunities of Central Bank-issued Cryptos (CBDs) that is drawing the attention of world-leading organizations such as the International Monetary Funds and the G20.
The model of creating a central bank Crypto that is backed by a valuable commodity such as gold or petroleum is a concept that is largely unexplored; It’s only a few nations such as Venezuela, that has launched the petroleum-pegged Petro Crypto, that offers a point of reference to this strategy.
Nonetheless, Russia’s apex bank is interested in a gold-pegged Crypto and this is set to direct Russia to a path of national Crypto adoption in the long term.
Is A Change Of Russia’s Anti-Crypto Policies In the Offing?
It is difficult to conclude with certainty that Russia is about to soften its tough and restrictive stance on Cryptos. In the nation of more than 130 million people, foreign Crypto exchange platforms are deemed illegal as media sites that promote Crypto awareness have been gagged. Additionally, the governor of the Central bank has revealed that at the time being, the bank does not envision Cryptos acting as monetary surrogates.
Therefore, the biggest question that comes out of the statement of the governor of the Central bank is whether the country is about to warm up to Digital Tokens.
In the meantime, all that the Crypto community can hope and look forward to is for the review process to either recommend the adoption of the gold-backed Crypto or to steer clear of a blanket condemnation of the use of Digital Tokens.
Crypto Regulation Is Coming To Russia
According to the TASS report, A Digital Assets Bill is set to be debated in the current session of the Duma as the country moves to regulate the use of Cryptos in the country instead o a blanket ban. This is a process that has been brewing since 2017 as Russia started to grapple with the reality of growing Crypto adoption in the country.
What Could The Impact Of The Crypto In Russia
After President Vladimir Putin annexed Crimea, the west imposed harsh sanctions in the country that have been tightened following the probe of Russian meddling in the US elections as well as the alleged state-sponsored attempted murder of Russian dissidents in the UK.
For this regard, a Crypto could allow Russia’s trade partners to escape sanctions and Russians to create their own decentralized economy that is immune from international politics.