Russia Sees 'No Obvious Need’ for National Cryptocurrency, Says Central Bank Chief

The head of Russia’s central bank, Elvira Nabiullina, said that the regulator doesn’t see an obvious need for the issuance of a national cryptocurrency.

According to Russian news agency TASS, Nabiullina said Russia’s central bank has been studying cryptocurrencies but doesn’t see a need for Russia to have a national one, noting it’s difficult to estimate the advantages it would bring to the table.

Speaking at the forum of innovative financial technologies in Russia, Nabiullina said:

Not only for technological reasons, but also because it is (difficult) to really estimate what advantages will the national digital currency give, for example, in comparison with existing electronic non-cash payments. There are many risks, and the advantages may not be obvious enough.

Back in June, she notably said the regulator was looking into a proposal to create a gold-backed cryptocurrency that could be used for cross-border settlements with other nations, bringing back the gold standard.

According to TASS, Nabiullina has earlier also stressed Russia’s central bank doesn’t support the legalization of cryptocurrencies as a legitimate payment method in the country, but sees potential in blockchain technology.

At the event her comments were addressed to Fan Yifei, deputy governor of the People’s Bank of China (PBoC), China’s central bank. Earlier this year it was reported China was ready to launch its own cryptocurrency, but Yifei noted the central bank will first carry out studies.

Featured image via Pixabay.