Fitch faults Russia’s limit on technology

TL; DR Breakdown

• Fitch faults crypto ban effect on innovation in Russia
• Fitch says the ban will stifle innovation
• Russians divided over ways to tackle the crypto sector

Over the past few months, the crypto sector in Russia has been at a standstill, albeit about the incoming crypto ban. Although it is not yet in effect, there have been different opinions about what the ban would look like. Reacting and giving its piece about the ban, credit company Fitch released a document citing the intricate details it found about the ban. Even though the Fitch piece sided with the government regarding the risks of the sector but cautioned them not to stifle innovation in the country.

Fitch says the crypto ban will stifle innovation

According to Fitch, the government could be stifling technology, thereby eliminating the potential for improving the country’s economy. The investment said that the ban might kick out a technology that can carry out secure and fast transactions across the country. With this, the bank of Russia will be at the receiving end in terms of over-dependence on its facilities.

Fitch also commended the country for developing its CBDC, the digital ruble. It pointed out that digital currency will help them have a hands-on approach to monitoring financial transactions and other aspects that crypto would have blurred. However, the research also said the bank of Russia’s motive for the crypto ban was to eliminate all rivals of its incoming CBDC.

Russians divided over ways to tackle the crypto sector

Like the current case in India, the crypto sector of Russia has been facing so many challenges over the past few months. In this time frame, there have been many calls for either a permanent crypto ban on activities. In contrast, others have called for a regulatory framework to guide activities in the sector.

Giving his opinion, the country’s ex-president gave his two cents on the crypto ban issue currently plaguing the European country. Talking to rbu.ru, a local station in the country, Dmitry Medvedev said that a ban on something has always had an effect over the years. He noted that previous crypto ban records show that the eventual results are not what people expect. However, he conceded that the central bank has its reasons for the crypto ban, which it is trying to make everyone see.