Russian Finance Minister backs legalization of transactions with stablecoins

The Russian Ministry of Finance (Minfin) is prepared to support the legality of transactions in Russia that use stablecoins, as per a high-ranking government representative. 

Indeed, the head of the Financial Policy Department at the Ministry of Finance of the Russian Federation, Ivan Chebeskov, noted that the ministry favors permitting the circulation of stablecoins in the nation, according to a report by Russian outlet bits.media on July 7.

The senior official made the comment while participating in a discussion at the Russian Creative Week titled “The Influence of Web3 — New Era of the Internet of Trust?“

Chebeskov made the observation that Minfin considers the matter from the point of view of Russian business owners.

“If there is a need for businesses, companies or investors to settle, invest in a new way, if they need such a tool, because it reduces costs, works better than previous tools, and if we can limit the risks associated with it, we will always support such initiatives,” he stated.

The use of crypto may construct a new financial system

The government official was also quoted by RBC Crypto as saying that blockchain technology in general, as well as crypto assets, digitalization, and tokenization, might possibly give a chance to construct a completely new financial system.

It’s worth mentioning that the ministry is aware that cryptocurrencies have the potential to pave the way for a new financial system, but they are unclear as to whether or not this new system will be superior to the one that is in place.

“But one cannot be completely sure that it will be able to work better than the existing financial systems,” Chebeskov said.

The Russian finance ministry has been a leading force behind attempts to legitimize cryptocurrency activities in Russia. This year, it introduced a new bill, “On Digital Currency”, to solve regulatory loopholes created by the statute “On Digital Financial Assets.” In January 2021, the latter partly regulated crypto. 

Bank of Russia’s ambiguous stance on crypto

On the other hand, the Central Bank of Russia has kept up a staunch resistance to the idea of permitting cryptocurrency transactions inside the borders of the nation, even as it has been working to create a digital ruble and has proposed a blanket ban on operations linked to cryptocurrencies.

Only lately did it begin to show signs of moderation, with Governor Elvira Nabiullina suggesting that the regulator might approve small-scale crypto payments in international settlements. This comes at a time when Western sanctions against Russia are becoming more severe. 

This comment was made by Chebeskov in spite of the fact that the Terra (LUNA) ecosystem’s infamous algorithmic stablecoin TerraUSD (UST) collapsed in May, which resulted in a significant market decline and a loss of faith in stablecoins.

Anatoly Aksakov, the leader of the legislative Financial Market Committee, recently made reference to the current state of the cryptocurrency market when he issued a warning that the future law, which has been subject to many rounds of modifications this year, would be “tough.”