Russia’s central bank, like China, wants to ban cryptocurrencies nationwide

RIO DE JANEIRO, BRAZIL – Russia plans to introduce a prototype digital ruble issued by the central bank by January 2022, and freely tradable and uncontrollable cryptocurrencies such as Bitcoin and others are therefore undesirable. They prevent the total financial control of citizens wanted by the state.

However, the Russian regulator presents the situation differently. He says the growing number of crypto transactions poses a risk to the country’s financial stability.

Digital assets have legal status in Russia, but cannot be used as a form of payment because the government believes they could be used for money laundering or to finance terrorism.

According to Reuters, the central bank is currently discussing a possible ban with market players and experts. If approved, the measure could apply to new purchases of crypto assets, but not to existing wallets.

Apparently, the current position of the Central Bank of Russia is a “total rejection” of all cryptocurrencies.

According to the central bank, the annual volume of cryptocurrency transactions carried out by Russian citizens amounts to $ 5 billion. In a financial stability review released last month, the regulator said the Russians were among the world’s most active participants in the cryptocurrency market.

In comparison, in Brazil crypto transactions are worth around US $ 9 billion, in Venezuela US $ 3.2 billion, and in Argentina US $ 3.1 billion.

Latin Americans use bitcoin to protect themselves against hyperinflation and during crises because it guarantees them stability (contrary to what the Russians claim).

Countries like Argentina, Uruguay, Colombia, Chile and Venezuela have struggled for decades with hyperinflation, a situation in which the national currency depreciates by tens or hundreds of percent a year. For example, last year’s inflation in Argentina

ELIMINATE COMPETITION FOR THE STATE TO HAVE TOTAL CONTROL

As they plan to ban “free” cryptocurrencies, authorities in the Russian Federation are set to start testing a prototype of their own crypto, a digital ruble issued by the Central Bank in January 2022.

The prototype digital ruble platform is expected to be ready in December 2021. The attempt to launch the digital currency will be in several stages, expanding the list of operations and increasing the number of participants in the project, which currently involves up to 12 financial institutions.

At least eight federal laws and five codes are amended: civil, fiscal, budgetary, penal and administrative.

According to Aksakov, holders of fiat currency and digital rubles will have the same rights, at least initially.

He said the new currency would serve as a means of payment, appreciation and savings, just like regular money, adding that a “transparent” payment space and “easy convertibility of the ruble from one form to another. another ”will be insured.

Alexei Minayev, deputy director of the Digital Economy Development Department of the Russian Ministry of Economic Development, spoke of a tendency to introduce digital forms of national currencies to the world, stressing that this initiative has virtually nothing to do with cryptocurrencies.

This statement should be taken with caution. Cryptocurrencies give people a way out of control since they are not issued by central banks. And they are used as a means of payment around the world. Something that can hardly be said about the digital ruble.

That is why they must be banned, as China has done and Russia is considering doing and other states will soon try to do the same.

Digital central bank money and the successive and complete abolition of cash and banks in their previous form and the introduction of digital central bank money lead to the ultimate goal which is that every citizen will have only one only account, through which all transactions will take place, and this account will no longer be with a commercial bank but with the central bank.

The context of this plan makes sense. The central bank’s digital currency is programmable. This would allow the state to monitor all transactions, assign different tax rates, and impose individual sanctions on their citizens.

The state could partially tie the money to an expiration date and could require us to spend certain specific amounts within certain time limits. It could also affect the money and force us to spend certain amounts only on certain goods or in certain regions.

Most importantly, the state would be able to cut everyone off from all payment streams with the click of a mouse, thereby wiping us out financially. The central bank’s digital currency is said to be the most effective social control mechanism that has existed in human history.

It would therefore be neither more nor less than the completion of a global dictatorship carried out by money.


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