It has been reported that the Central Bank of Russia is currently exploring the potential of stablecoins that have its value pegged to other assets. The head of the Central Bank, Elvira Nabiullina has said that this exploration made to test the potential of stablecoins does not aim to substitute fiat or use it as a means of payment, as per a report.
To quote Nabiullina:
“We are testing stablecoins in our regulatory ‘sandbox’. We see companies willing to issue tokens pegged to certain real assets. In our regulatory sandbox, we are learning the potential uses of stablecoins but we do not assume that they will function as a means of payment and become a surrogate for money.”
Nabiullina also says that stablecoins are intended to be used to avoid various volatilities the crypto market usually faces.
Bank of Russia Explores Possibilities of CBDC
Alongside the exploration of stablecoins, the Bank of Russia is also engaged in exploring the possibility of a digital ruble i.e. a central bank digital currency (CBDC). This trial to issue CBDC is wished to be made by the officials based on the global feedbacks of other jurisdictions all around the world. However, Nabiullina seems skeptical about the issuance of CBDCs as it can alter the financial markets with negative outcomes, according to her.
Nabulliana Discourages Launch of CBDC
Nabiullina discourages the launch of CBDCs based on the reason that the popularity of cryptocurrency has gone down the hill in the past two years in the country. She has also referred to an official who had claimed that the majority has expressed its resentment on private money and in such a case any digital currency, designed to substitute private money will be turned down outright.
Despite all such problems, Russia is striving to be in alignment with other countries in the issuance of CBDC. Meanwhile, China and France are already working towards the issuance of their first CBDCs.