Russia Central Bank faces criticism for Crypto Ban Purposal

Russia’s central bank advocated a ban on cryptocurrency mining, creation, and use. Russian crypto users and aficionados reacted with diverse emotions to the decision. The Central Bank of Russia published a study on January 20 advocating a total ban on cryptocurrency trading, usage, and mining in Russia. The hazards linked with the usage of cryptocurrencies are much higher in emerging markets, including Russia, according to the research.

Several notable figures in the industry have spoken out against the proposed motion in response to the ban. Leonid Volkov, Alexei Navalny’s chief of staff, and Pavel Durov, the founder of Telegram, were among those who spoke out against the crypto ban plan. The Russian entrepreneur went on to say that the restrictive approach could stymie blockchain development. Durov went on to say that: No developed country prohibits the use of cryptocurrencies.

A prohibition like this will inevitably stifle the advancement of blockchain technology in general. Many human activities, from finance to arts, benefit from these technologies in terms of efficiency and safety. The Russian central bank, on the other hand, is certain that the spread of cryptocurrencies is a threat to Russia’s financial system and the ruble’s stability.

Anton Gorelkin, the Deputy Chairman of the parliament’s Committee on IT and Communications, described the bank’s call for a ban as sensational, but acknowledged that it could serve as a springboard for a broad discussion on cryptocurrency regulation. He elaborated: I don’t believe crypto ban is the appropriate move. Yes, many of the regulator’s reasons are reasonable and right from an economic security standpoint. But I agree with experts who feel that blockchain technologies have a bright future and that banning cryptocurrencies would harm Russia’s IT development.

Andrey Lugovoy, the Committee on Security and Anti-First Corruption’s Deputy Chairman, has also come out against the planned ban. Within the working committee responsible with crafting a law to regulate crypto and mining this year, MPs asserted that the Central Bank is alone in calling for total restrictions, according to the Media. Not a single government authority endorses the position taken by the Central Bank so far. MPs have been quoted as saying that talk of such restrictive measures may make Russia a joke for the entire globe.

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