Elvira Nabiullina: “The CBR is testing stablecoins, but does not consider them as a means of payment”

Chairman of the Bank of Russia Elvira Nabiullina announced the start of testing stablecoins in the regulatoryThe sandbox, however, believes that caution should be exercised when launching the state cryptocurrency.

Nabiullina explained that under this "sandbox"we understand the rules by which digital products are tested in a limited environment without the risk of violation of the law. The bank is testing the functionality of stable cryptocurrencies secured by real assets and issued by other companies. At the same time, the Central Bank of the Russian Federation does not consider them as a means of payment or cash equivalent, however, it is still studying the possibility of issuing its own cryptocurrency.

Nabiullina noted that they are showing stablecoinsinterest in many countries, so do not categorically refuse such an opportunity. The launch of the state digital currency requires a serious approach, and for this it is worth assessing what advantages it has in comparison with fast payment systems between individuals and legal entities.

“If an individual can keep money in an account inThe Central Bank, commercial banks may suffer from the flow of funds. It is necessary to take into account not only the positive experience of other countries, but also how such innovations can affect the country’s financial system,” — said Elvira Nabiullina, adding that over time, people's interest in cryptocurrencies begins to decline, however, there are those who believe in creating a decentralized system without government intervention.

In October, Nabiullina stated that she did not see the need to develop and issue a state-owned stablecoin, as the risks far outweighed its benefits.

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