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Russian miners can emigrate to Kazakhstan after the Chinese

Economist supported the initiative of the Central Bank to ban cryptocurrencies in Russia

Pointing to the risks of forming a bubble in the cryptocurrency market, the Central Bank proposed to completely ban the activity on the circulation of “virtual” money in Russia. We are talking about a ban on the issuance, circulation and exchange of cryptocurrencies. The regulator associated his initiative with a threat to the ruble exchange rate and financial stability in general.

Last December, the head of the Central Bank, Elvira Nabiullina, opposed the use of Russian financial infrastructure for transactions with cryptocurrencies. According to her, they “carry great risks for retail investors due to high volatility and use in illegal activities, so we cannot welcome investments in such assets.”

The volume of operations of Russian individuals with cryptocurrencies can reach $5 billion (over 350 billion rubles). As stated in the report of the Central Bank, cryptocurrencies are mainly bought for the sake of speculation, investments, transfers abroad and avoiding the requirements for combating money laundering and terrorist financing. Meanwhile, in August 2021, Russia came in third in terms of bitcoin mining, accounting for 11.23% of computing power. The share of Russian users on various crypto exchanges varies from 7% to 14.5%.

As the authors of the report note, the massive purchase of cryptocurrencies by the population is fraught with an outflow of capital from the country and a weakening of the ruble; the growth of their popularity increases the risk of an overflow of funds from bank deposits into cryptocurrencies. But most importantly, there is a serious risk of undermining money circulation and losing the sovereignty of the national currency.

“We should not be guided by the world experience and the arguments of IT specialists, for which there is only a technical side of the issue,” says financial analyst, candidate of economic sciences Mikhail Belyaev. – The main danger of cryptocurrency is that when it receives a permissive circulation regime in the country as a means of payment, it actually becomes a second, parallel issuing center. This erodes the status of a single emission center that issues the national currency. And this is a colossal blow not only to money circulation and money supply, but, as a result, to the entire economic mechanism of the state.

El Salvador, which officially allowed the circulation of bitcoin as a monetary unit (and not as an asset that can be bought and sold), is definitely not a decree for us, says Belyaev. In this country, which cannot be found on the economic map of the world even with a magnifying glass, there has been no own currency for 20 years, respectively, the authorities can do whatever they want in the financial sector.

At the same time, China was one of the first to ban cryptocurrencies, after which Chinese miners massively “migrated” to Kazakhstan. So from the point of view of deep economic meaning and national security, the initiative of the Central Bank of the Russian Federation is absolutely correct. “Imagine,” Belyaev sums up, that every Russian has a printer on his desk, on which he can print rubles as needed. This is absurd!”


Source From: MK

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