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Blockchain is not a panacea, but a cryptocurrency …

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Blockchain is not a panacea, but where needed, it’s the savior

Blockchain is not a panacea, but a cryptocurrency ...

Blockchain is not a panacea, and cryptocurrency is not money – Olga Skorobogatova, First Deputy Chairman of the Bank of Russia
CONTENT

  • The Bank of Russia does not consider blockchain a universal technology

  • Cryptocurrencies are too dangerous to be considered a legal tender

  • Stablecoins are an interesting concept but warrants further study

International consortium of news organizations developing transparency standards.

Cryptocurrencies are too volatile and carry serious risks for consumers, so the Central Bank of Russia is not going to change its negative attitude towards these assets.

Blockchain is not a panacea, but a cryptocurrency ...

First Deputy Governor of the Bank of Russia Olga Skorobogatova spoke about how the Bank of Russia develops innovations and why there is no place for cryptocurrencies in it.

Blockchain is good, but not for everyone

Blockchain is great for letters of credit and guarantees as it solves the trust issue. However, do not think that this is a universal technology for all occasions, she said in an interview with Euromoney.

According to Skorobogatova, many people overestimate the advantages and prospects of blockchain technology, which in fact will only take root in those asset classes where it is able to create additional value..

The Russian Central Bank is now actively developing its regulatory sandbox, which is part of the Central Bank’s digital strategy developed in 2017. Unlike most European countries, the Russian sandbox is inhabited mainly by projects developed by the banking sector, while the share of fintech companies is still negligible.

According to Skorobogatova, this is due to the fundamental difference between Russian banks, which are mostly young and ambitious, actively committed to innovation..

To stimulate the development of the local financial technology segment, in January 2017, the Central Bank created the Russian Association of Fintech Companies. However, here, too, the key role is played by the three largest Russian lenders – VTB, Sberbank and Alfa Bank..

Blockchain is not a panacea, but a cryptocurrency ...

Cryptocurrencies are too dangerous

Commenting on the topic of digital currencies, the first deputy chairman noted that the Central Bank does not consider cryptocurrencies to be a means of payment. The regulator took this position a long time ago, and it has not changed.

“Cryptocurrencies pose great risks to consumers due to high volatility, lack of guarantees and their active use for money laundering and terrorist financing,” she said..

At the same time, stablecoins do not cause such harsh rejection from the Central Bank as Bitcoin and other crypto coins..

“We believe that this is a more reliable type of cryptoassets, since they are backed by real assets and give users certain guarantees,” she said, adding that effective regulation of this sector at the global level is necessary to protect consumers..

The central bank is actively cooperating with other regulators regarding stablecoins and coins such as Libra. According to Skorobogatova, many central banks are actively exploring the possibility of creating a national digital currency, and the Central Bank of the Russian Federation is no exception in this regard, but at this stage the authorities have more questions than answers..

In particular, she does not yet see what real benefits the digital currencies of central banks (CBDC) will bring to the economy, the people and the people due to the new financial instrument – the digital currency of the central banks (CBDC). business.

“What’s new with CBDC? So far, no one in Russia or anywhere else can give a convincing answer to this question and even explain the difference between electronic payments and CBDC “.

Blockchain is not a panacea, but a cryptocurrency ...

People want fast payments, but national payment systems can do it too.

Meanwhile, the government cannot decide how to relate to digital currencies and how to regulate them. Consideration of the law on digital financial assets is carried over from one session to another. Recently, Anatoly Aksakov, Chairman of the State Duma Committee on Financial Markets and Chairman of the National Banking Council at the Central Bank of the Russian Federation, admitted that the delays were related to disagreements on key issues, and promised that the law would be adopted in the spring session. But he was wrong again. Consideration of the bill postponed, citing the coronavirus epidemic.

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