Russia’s State Duma Expects Cryptocurrency Issuance to Increase in 2021

According to a senior official, the Russian government anticipates that more cryptocurrencies will be issued on the local market in 2021.

Anatoly Aksakov, a member of the Russian State Duma and a representative of local cryptocurrency legislation efforts, said that the Duma Committee on Financial Markets expects the Russian issuance of cryptocurrencies to increase. Especially, after the adoption of the new cryptocurrency law of the country on January 1, 2020. The “On Digital Financial Assets” law was passed in July 2020. It provides legal status to cryptocurrencies but prohibits people from using cryptocurrencies such as Bitcoin as a payment tool.

According to a report issued by the state news agency Parlamentskaya Gazeta, Aksakov said that many companies are expected to issue stablecoins soon. According to him, many large companies have asked them to pass the law more quickly. 

In addition to forecasting an increase in cryptocurrency issuance in Russia, Aksakov also expressed optimism about the digital ruble’s future. The official said that the digital ruble is one of the future forms of the ruble. It should allow the development of the financial asset market.

However, it does not appear to be clear whether local companies could issue stablecoins at ruble parity.

All three forms of the Russian ruble will be of completely equal value

As previously reported, the Central Bank of Russia officially unveiled its plans to issue the central bank’s digital currency. It was due to take place on October 13, 2020. It claimed that the digital ruble would serve as an additional form of money alongside cash and traditional fiat forms. In early December, a senior Bank of Russia executive said the bank plans to ban private companies from offering stablecoins backed by the country’s fiat currency. The Bank of Russia did not respond to any questions for comment.

According to the Central Bank of Russia report, the digital ruble will possess all the necessary features to fulfill money’s function.  

The transfer of digital rubles from one user to another will take place in the form of a digital code movement from one electronic wallet to the other. CBR said that there should be the possibility of using the digital ruble offline. Particularly, in the absence of access to the Internet or a mobile connection. It is necessary to develop a unique infrastructure for this. It additionally said that the digital ruble platform would merge with the existing infrastructure.

All the forms of the Russian ruble will be of absolutely equal value. As it is now, 1 ruble in cash is equivalent to 1 non-cash ruble. Moreover, 1 digital rublone will always be identical to each of them. At the same time, owners of money will have the ability to transfer rubles from one form to another freely.

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