Central Bank of Russia Working Towards Integration of Crypto in Financial System
The Central Bank of Russia (CBR) shared a public consultation report on Nov. 7 titled "Digital Assets in Russian Federation." The report examines the integration of technology with traditional financial systems. Crypto assets and blockchain technology are being integrated into the Russian financial system against the backdrop of global financial sanctions.
"Digital assets issued in blockchain networks may not have any connection (functional, legal, economic) with real assets and have no value outside the blockchain, but at the same time provide their owner with certain rights," as per the report.
According to the CBR, cryptocurrencies can also be linked to "financial and non-financial assets (securities, physical goods) that are outside the blockchain."
Furthermore, the report discusses regulations governing digital assets, investor protection, smart contracts, and tokenization, as well as proposals for tax reform. As long as digital technologies do not pose uncontrollable risks to consumers financially or in terms of cybersecurity, the CBR supports “further development of digital technologies”.
Currently, Russia has a legal framework in place for regulating smart contracts. Before they can be used in the country, smart contracts may be subject to an independent audit.
Russia's central bank has become increasingly open to crypto technology. Crypto plays a major role in the country's efforts to monetize its natural resources and move away from the US dollar, which remains a powerful tool for sanctions on global oil and gas markets.
CBW - External Analyst
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