Thu 20 January 2022:
On Russian soil, the Russian central bank has suggested a ban on cryptocurrency use and mining. Cryptocurrency poses a danger to financial stability, individuals’ well-being, and the bank’s monetary policy sovereignty, according to the bank.
For years, Russia has opposed cryptocurrencies, arguing that they can be used to fund terrorism or money laundering. In 2020, Russia granted cryptocurrency legal status but prohibited their usage as a means of payment.
In a report published on Thursday, the central bank said speculative demand primarily determined cryptocurrencies’ rapid growth and that they carried characteristics of a financial pyramid, warning that bubbles in the market could form, threatening financial stability and citizens.
The bank proposed prohibiting financial institutions from engaging in any cryptocurrency transactions and suggested that measures be devised to limit transactions involving the purchase or sale of cryptocurrencies for fiat or traditional currencies. Crypto exchanges are included in the proposed prohibition.
According to the central bank, Russians are active cryptocurrency users, with an annual transaction volume of roughly $5 billion.
Governments all around the world are cracking down on cryptocurrencies, fearing that privately run, highly volatile digital currencies may undermine their control over financial and monetary systems.
SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES
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