As per the latest report, the Central Bank of the Russian Federation is checking how stablecoins can work. It was reported that the head of the Central Bank, Elvira Nabiullina said the bank has begun testing stablecoins in the regulatory sandbox.
Russia Starts Testing of Stablecoins in Regulator Sandbox
Stablecoin has undeniably been the trend of 2019, major market players and central authorities caught up researching different types of stablecoins, and the most widely known is the one that is pegged to fiat currency. However, the most recent in this race is Russia. Consequently, Nabiullina, the head of the Central Bank of Russia says that they are also at the stage of studying this topic. She elaborates that the country’s upcoming stablecoins are designed for companies that want to issue digital assets backed by real assets.
“First of all, we need to understand what will be the advantages to our citizens, for business, for example, compared to instant payment systems, because the issue of the digital ruble can have serious consequences leading to changes in the structure of the financial market, deposits outflows, and funds redistribution,” Nabiullina added.
According to her, the interest graph of cryptocurrency in Russia has decreased in the last few years but Russians are still doubling down on the future of cryptocurrency. She adds that the people in Russia believe cryptocurrency could be “the creation of a system of private money without government intervention”.
This being said, companies with the help of sandbox are now able to test their products and services under the purview of government. Nabiullina went on to add that they have tested stablecoins in their regulatory sandbox and continued;
Companies that want to issue tokens secured by some real assets. We in the ‘sandbox’ look at how they can work, but we do not assume that they will function as a means of payment and become money surrogate,”