Central Bank Of Russia Delving Into Cryptocurrency With State-Backed Coin

Elvira Nabiullina, chairwoman of the Central Bank of Russia has recently told news sources that the bank is considering launching its own cryptocurrency and is looking into different “opportunities” according to Nabiullina.

So the central bank in Russia is launching its own cryptocurrency. The chairwoman said that even though we can’t expect the state-backed cryptocurrency to be launched anytime soon, it is being strongly considered.

As reported by Be in Crypto:

“TASS Russian News Agency is reporting that the consideration would, first and foremost, have to test the reliability of the technology before anything formal is released. The main purpose would be to keep a ledger of registries for the bank, but could expand to monetary policy.”

Posing the question to reporters, Nabilullina said: “Are we, as a society, ready to give up cash?”

Nabilullina believes that the transition towards as digital currency would be a slow but sure process but a state-backed virtual currency would make this whole affair a lot easier.

Nabilullina makes it clear that a digital economy doesn’t come without its own drawbacks. By looking at nations that have adopted a non-cash economy, the chairwoman says that it is clear some people prefer cash because of its anonymous nature. She said to reporters that “people value their privacy,” which is very true. In the end, the success of non-anonymous digital currency would require a willing society but as of now, Russia isn’t ready to take this step. But looking to future, maybe the country will.

Nabilullina has advised managing partners of the central banks to start examing the benefits of cryptocurrencies and blockchain technology.

Russia has made a few headlines over the last month or so. This is because the nation has been changing its stance on cryptocurrencies.

Last week, “the Agency of the Far East for Investments and Exports (IPA) proposed creating an offshore financial center for cryptocurrency trading on the Russia-Chinese border. The trading hub would be on Bolshoy Ussuriysky Island and would likely be the only economic zone for digital assets anywhere in the world.”

Russian authorities are clearly intrigued by cryptocurrency. It will only be a matter of time until we hear any official announcements regarding digital assets.