The Central bank of russia is speaking with financial market leaders and industry experts about a possible cryptocurrency investment ban to stem the tide of financial instability with increased use of digital currency, according to a Reuters report on Thursday (December 16).
An anonymous source expects the ban to apply only to new purchases of cryptocurrencies, but another source believes that the Russian central bank is ready to impose a "total rejection" of all cryptocurrencies.
The Bank of Russia said it is preparing an advisory report on the issue, but did not provide details.
The growing popularity of cryptocurrencies "has raised concerns about financial stability," according to the central bank's first deputy governor. Ksenia Yudaeva. Crypto transactions in Russia reached around $ 5 billion over the past year, according to the central bank.
Russian leaders have long warned about the use of digital assets for money laundering or financial terrorism. In 2020, Russia converted cryptocurrencies into legal tender, but prohibited their use as a means of payment.
China declared all cryptocurrency transactions illegal in September as part of its nationwide crackdown on the tech sector. Meanwhile, the cryptocurrency grew to around $ 3 trillion in valuation earlier this year before falling to around $ 2.3 trillion.
Related: China tests connection between digital Yuan and Hong Kong's express payment system
While China has banned cryptocurrencies, its finance leaders are trying to connect its nearly completed central bank digital currency (CBDC) to Hong Kong's Rapid Payment System.
The pilot program between the People's Bank of China (PBoC) and the Hong Kong Monetary Authority (HKMA) was announced by the director of the China digital yuan project last week. China's CBDC project is expected to launch in February.
