Russia May Ban The Use Of Cryptocurrencies, But Issue Stablecoins Backed By Gold

Russia May Ban The Use Of Cryptocurrencies, But Issue Stablecoins Backed By Gold
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Crypto has become a hot topic for a while now, dealing with acceptance and rejections. In addition, many governments across nations are concerned about the problems crypto poses to their economy, with Russia being part of this. 

In Russia, cryptography legislation is severely split amongst the country’s Government officials, CFOs, and Members of Parliament (MPs). The Russian MPs have indicated that cryptocurrency trading will be prohibited; however, the cryptocurrency mining work and Government-owned Stablecoins backed by gold will be made legal in the country. 

Also Read: Armenia Is Calling On Crypto Mining Firms To Open Shop In A Decommissioned Power Plant

The Russian politician and Member of State Duma, Vladimir Vladimirovich Gutenev, stated that crypto-mining could be allowed to be legal in Russia, under the condition that crypto miners should pay the taxes, must have transparency in their work, and must operate in areas with sufficient electricity supply and minimize the energy use as well not to cause problems of power shortage. 

The co-founder of VKontakte, Pavel Durov, is not in support of the decisions made by the Russian government, cautioning that it isn’t a good idea to ban cryptocurrency trading. He has stated that the ban will slow down Blockchain development. This futuristic technology will improve various industries, especially the finance industry, and resolve all the shortcomings in the current system.

Also Read: Bitcoin falls below $40,000 as US Stocks Slide, Russia Considers a Crypto Ban

The Central Bank of the Russian Federation has stated the concerns cryptocurrency mining poses to power usage. The mining of major cryptocurrencies, such as Bitcoin, is done by worldwide network powerful computers that can work on complicated mathematical operations, consuming a lot of power most often generated by fossil fuels, making it harmful for the environment. Therefore, according to the bank, banning cryptocurrency mining is the most viable option. 

Also Read: Crypto Mining and Trading were Banned by the Russian Central Bank

The statements made by various well-known personalities and organizations on the government’s decision are plenty. The pros and cons are enormous. However, whatever decision may be upheld, will affect the crypto industry worldwide.

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