Bank of Russia rejects cryptocurrency for fear losing authority

The top officials of the Russian Bank rejected the legalization of cryptocurrency being prepared by the federal government. The head of Central Bank of Russia, Elvira Nabiullina, opposes the legalization of digital currency for fear of 'losing control' and says that cryptocurrency is the enemy of the bank and will not be accepted on the Russian market.

Tinuku Bank of Russia rejects cryptocurrency for fear losing authority

Nabiullina says that cryptocurrency is not needed in the Russian Federation and becomes an enemy of the bank. The development of fintech has undermined the income of traditional banks and the head of the Central Bank of Russia is worried about losing more authorization if more and more digital currencies are used which of course will further undermine the bank's position in the payment market.

Nabiullina on Thursday spoke at a meeting between President Vladimir Putin and more than 50 business leaders, CEOs of leading companies, banks and public organizations. The finance ministry earlier this month announced the government is drafting a bill to legalize cryptocurrencies such as bitcoin.

Russian Finance Minister Anton Siluanov said the bill is to provide a legal framework for crypto circulation in Russia and will be prepared by the end of this year. Earlier, Deputy Finance Minister Alexei Moiseev, proposed cryptocurrency will be regulated as a financial asset and listed on the stock exchange.

First Deputy Prime Minister, Igor Shuvalov, also made a statement about Moiseev's proposal. Shuvalov said the draft still does not have an official definition or a cryptocurrency law, but the issue will be seriously discussed "in the near future."