Ksenia Yudaeva considers that changing the existing provisions to prohibit using Bitcoin as a payment means is unreasonable. The State Duma debates the regulation and believes that Bitcoin will help citizens affected by the economic sanctions.
Anton Gorelkin, a representative of the State Duma from the ruling United Russia party, proposed using cryptocurrencies to evade the sanctions against the country. However, Ksenia Yudaeva, the first deputy president of the Bank of Russia, rejected that idea.
Yudaeva stated it was impossible to use crypto assets to circumvent the financial restrictions due to the conflict with Ukraine. She said the officials of the Central Bank believe that Russian companies cannot transfer large amounts of money in cryptocurrencies. The European Union, the United States, the United Kingdom, Japan, and Singapore established measures to prevent Russians from relying on cryptocurrencies.
The institution also mentioned that many cryptocurrency exchanges have already restricted Russian investors and blocked their funds.
Ksenia Yudaeva recalled the provisions of the Digital Financial Assets Act, which prohibit using cryptocurrencies to pay for goods and services. The Bank of Russia considers that it is unreasonable to change that regulation.
The State Duma Sees Bitcoin as a Lifeline for Millions of Russians
Anton Gorelkin advocates regulating the use of cryptocurrencies in Russia amid the conflict with Ukraine. He believes that Bitcoin can be a lifeline for the citizens affected by the economic sanctions.
In March, he told a group of blockchain and cryptocurrency experts that 12% of the Russian population uses crypto assets. The representative of the State Duma explained that this percentage represents millions of citizens.
Gorelkin said that they seek to protect people from the shadow circulation of cryptocurrencies, fraudulent activities, and the irregularity of platforms.
The ideas of the parliamentarian underpin some fears from the West due to the war between Russia and Ukraine. According to media outlets, President Vladimir Putin planned to evade economic sanctions with Bitcoin.
Some analysts do not believe that cryptocurrencies can solve international economic sanctions. The first deputy president of the Bank of Russia argues that digital currencies serve for fewer types of payments than traditional systems.
While Russia Wants to Regulate Bitcoin, the Central Bank Rejects It
The Russian Central Bank finds that evading the sanctions with Bitcoin is not very feasible. However, the institution keeps creating a legal framework for cryptocurrencies among the government priorities amid the conflict with Ukraine.
The State Duma has continued debating the regulation. Meanwhile, Pavel Zavalny, head of the Energy Committee, recognized the possibility of accepting Bitcoin as payment for energy resources.
Mikhail Mishustin, the Russian Prime Minister, said it was time to integrate cryptocurrencies into the economy of the Eurasian nation. He agrees with allowing the circulation of digital currencies in the Russian financial system.
However, the Central Bank of Russia strongly opposes legalizing cryptocurrencies by proposing to ban Bitcoin trading and mining. That raised considerable controversy in the Eurasian country and led the Ministry of Finance to give arguments for regulating the ecosystem.
The latter government agency introduced a regulation bill that requests cryptocurrency exchanges to operate in the legal sector. For that reason, they would require personal information from users through banks or authorized intermediaries.
By Alexander Salazar
