The Russian government does not want to enable bitcoin for ordinary Russians, but only for foreign trade companies.

The Central Bank of Russia is ready to allow the use of cryptocurrency in the country, but only as part of a legal experiment, Governor Elvira Nabiullina said.

“It is possible to consider transactions through an authorized organization in the country under an experimental legal regime, but this would require a corresponding law,” Nabioullina told a news conference. the Bank of Russia on December 16.

The Bank of Russia’s main objection to crypto has always been that it cannot be used as a payment tool, Nabiullina pointed out. She added that the central bank is also concerned about protecting investors as the crypto market is very volatile.

While Russia does not officially ban its citizens from investing in crypto, the Bank of Russia believes that the mass adoption of crypto would inevitably lead to its use as a means of payment, according to Deputy Governor of the Bank of Russia Alexey Zabotkin. He stated:

“If you allow cryptocurrency to circulate freely in the country as an investment tool, it will inevitably become more widely used as a means of payment as your ownership expands. It will be impossible to prevent this.
Therefore, Russia’s experimental regime, if adopted, will be used in favor of using cryptocurrency in Russia, but “only to support foreign trade,” Zabotkin pointed out.

The latest news brings clarity as to why the Central Bank of Russia is so negative about the adoption of crypto as an investment tool in the country.

Russia’s main crypto law “On Digital Financial Assets” has officially banned the use of cryptocurrencies like Bitcoin

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for payment purposes in 2020. The law did not ban Russians from investing in crypto, but local crypto exchanges remained unregulated.

Related: Bank of Russia wants to ban miners from selling crypto to Russians

While it does not want to allow Russians to use decentralized financial instruments like Bitcoin locally, the Russian government itself does not want to forego the benefits of decentralization on a global scale. In late November, President Vladimir Putin criticized the monopoly of global financial payment systems and called for an independent blockchain-based settlement network.

Source: CoinTelegraph