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    Home » Does Russia need a national cryptocurrency? Opinion of the head of the Central Bank of the Russian Federation and experts

    Does Russia need a national cryptocurrency? Opinion of the head of the Central Bank of the Russian Federation and experts

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    By BlockchainJournal on October 12, 2019 News
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    Russian experts negatively evaluated the statements made on October 10 by the head of the Bank of Russia Elvira Nabiullina about “national cryptocurrency”.

    Speaking at the Finopolis Forum of Innovative Financial Technologies in Sochi, Nabiullina said that "the need to issue a national cryptocurrency is not obvious." The head of the Central Bank explained:

    “Not only for technological reasons, but also because it’s realistic to appreciate what the advantage of the national digital currency will be, for example, compared to existing electronic non-cash payments. There are many risks, and the benefits may not be obvious enough. ”

    Commenting on the statements of Nabiullina, the economist Yuri Pronko noted that the head of the Central Bank is refusing the national cryptocurrency, because otherwise it would be impossible to keep Russian money abroad, for example, in gold and currency reserves, as is now done. Pronko believes that a national cryptocurrency could make spending budget funds absolutely transparent. He explained:

    “All cryptocurrencies are colored. And when we hear constant talk about the fact that it is impossible to invest gold and foreign exchange reserves, because it will lead to inflation, so cryptocurrency, especially national, will allow, having “painted” this money, to spend it for its intended purpose on specific projects. This money cannot go anywhere else than to implement a specific project or plan. ”

    But, in the opinion of Pronko, it seems that the Central Bank and the country's authorities now have more ambitious goals, namely, not to allow spending the state budget on the development of Russia.

    “We see this by the way gold and foreign exchange reserves are allocated. 80% of the gold reserves of Russia are located outside the country. Crypt will not allow them to do this , ”said Pronko.

    In turn, the candidate of economic sciences Alexei Lapushkin believes that talking about the national cryptocurrency is designed to distract the country's inhabitants from real problems, in fact, the Central Bank should deal with the ruble and the refinancing rate.

    Lapushkin noted that national cryptocurrencies in other states are still in little demand. So, Venezuela has developed a similar project in connection with the introduction of international sanctions. Discussions about national cryptocurrencies are held in Turkey and Iran, in Sweden.

    “But I believe that for us now the question of creating our own cryptocurrency is not entirely relevant, since it would be nice if Elvira Sahipzadovna figured out, first, the national currency and the monetary policy that is being pursued ,” the economist said.

    According to Lapushkin, neither the introduction, nor the absence of the Russian cryptocurrency, most likely will not affect the Russian financial market and monetary policy.

    “Therefore, I believe that, rather, now we need to discuss not about the introduction of cryptocurrency, but about reducing the refinancing rate and changing, respectively, monetary policy. Because it seems to me that discussions about cryptocurrency are an attempt to divert in the direction of Nabiullina from the very specific, pressing, burning problems that the country faced yesterday. This is a reduction in the discount rate and easing of monetary policy, ”the expert concluded.

    Publication date 10/12/2019
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