Central Bank Of Russia Moves For A Ban On Cryptocurrencies

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A recent report has revealed the plans of Russia’s central bank, The Bank of Russia, to completely ban the use, creation, and exchange of cryptocurrencies within the country. This new development might have come as a shock to many, but very much expected by some, as the trend of countries banning cryptocurrency has been making rounds.

 

The Bank of Russia expressed that the autonomy and decentralization of the cryptocurrency market hold more threats than advantages for the country’s financial system. It also included the threat to the stability of the country’s official currency, the Russian ruble. According to the central bank, the proposed ban is in the public’s interest; to protect them from inherent risks that come with Cryptocurrencies. 

 

Another reason for justification is environmental safety. The central bank stated that mining harms the green agenda Russia has, and it exposes the country’s power supply to problems best avoided. Russia has already banned all forms of crypto payments within the country and, in December last year banned mutual funds from investing in Crypto. 

 

Since the headline of China banning cryptocurrency broke the internet, few countries became interest points for Crypto miners and companies—with Russia being part of them. According to Cambridge University data in October 2021, Russia came third behind the U.S. and Kazakhstan in crypto mining volume. This shows a thriving market for the Crypto mining industry. Russia contributes over 10% of Bitcoin’s hash rate, and all this will be halted if this proposed ban falls through.

 

Whether the ban will go through is still a debate, as the president, Vladimir Putin, is yet to give an official statement on the matter. The proposal is currently facing opposition among lawmakers as a result of different perspectives and considerations of certain implications it might have on the overall wellbeing of the economy.

 

Will Vladimir Putin “Okay” The Ban?

 

Despite the news of the proposed ban making rounds on the internet, it just remains a proposal until the president gives his approval. What would be the response of Vladimir Putin is currently unclear, seeing he has been silent on cryptocurrencies. Some argue his silence comes from a place of political and geopolitical considerations of possible implications. 

 

Can Cryptocurrency Really Be Banned?

 

The total number of countries that have banned cryptocurrencies currently sits at 9. Data from the Law Library of Congress reveals; with 7 of them being Islamically dominated countries. This number paved the way for discussions regarding the stance of Islamic law on cryptocurrency. 

 

Despite all these bans, the question remains: Can cryptocurrency really be banned? There are different conclusions, but the vast majority of crypto enthusiasts believe the structure of cryptocurrencies makes it impossible to really ban. Its decentralization and availability as an open-source network make it difficult to regulate.

 

https://twitter.com/FuturistsMY/status/1484819550055301124?s=19

 

Some analysts believe this move for a blanket ban in Russia holds more implications than the central bank is willing to shed light on. What the outcome of this proposal will be is something the Crypto world is eagerly watching and waiting for. Whatever the outcome, good or bad, it will be hard to take cryptocurrencies down.

 

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