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Russian Central Bank: ‘Crypto Assets’ No Threat to Global Financial Stability

Crypto assets don’t currently threaten global financial stability, according to a 30 May report released by Russia’s Central Bank, writes Cointelegraph.

The report went on to say that, due to comparatively low global cryptocurrency volumes, this particular segment is insignificant at present, posing no actual threat to global stability in financial sectors. Similar to a recent Dutch internal report aimed at the Netherland’s domestic economy released this week, the report found that this risk would grow if banks and institutional investors became more significant players in the crypto space.

The research also recommended that the term “cryptocurrency” be replaced by the term “crypto asset” which can be considered a financial asset based on the application of cryptography and distributed ledger technology. The report claims that these assets currently have little chance of becoming a reliable value standard or means of exchange due their high price volatility.

The paper goes on to focus on one of the major debates in governmental financial circles of the risks posed by crime, including money laundering and terrorism and the lack of protection for investors rights. New laws recently passed by the Russian State Duma defined cryptocurrencies and tokens as property, and specified new regulations for utilizing blockchain technology.

Russian bank Sberbank CIB and the National Settlement Depository are piloting Russia’s first official ICO having considered the Russian ICO market could be “highly promising”, particularly given bank customers’ interest in “this new way of fundraising”, according to CIB head Igor Bulantsev.

Arsen Bakhshiyan, CFO of crypto platform Kvantor, feels that the time is right for Russia to be a world leader in cryptocurrency, pointing out that the country, according to Finder, and is well positioned, and has the talent to develop its own separate blockchain system, suggesting:

“…one only has to look at some of the most ground-breaking FinTech developments of the past few years to see the prevalence of Russian talent. Major projects including Ethereum, Telegram, Revolut, and Yandex are all led by Russians, suggesting that the country has a real appetite for technological innovation.”

President Putin has begun to show clear signs that he sees Russia as a major world player in bringing blockchain into mainstream usage, stating recently that he has no intention of allowing the country to be “late in the race” and even meeting Vitalik Buterin, co-founder of Ethereum.

Last month in a massive turnaround from being vehemently anti-crypto the Russian President’s economic advisor, Sergei Glazev has stated that cryptocurrency, or “crypto assets” could be useful to carry out “sensitive” state activities, according to a report in the Financial Times.

 

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