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Russian central bank ‘short-sighted’ regarding crypto, lawmaker says

The Cointelegraph ​

Cryptocoins News / The Cointelegraph ​ 253 Views

A long-time member of the Russian State Duma has criticized the central bank’s approach to digital assets.

A Russian State Duma member has blasted the central bank’s tough stance on the cryptocurrency industry for ignoring the growing demand for crypto in the country.

Fedot Tumusov, a member of the “A Just Russia” party representing the Siberian region of Yakutsk, has criticized the Bank of Russia’s approach to regulating the crypto industry following a Tuesday plenary meeting of the State Duma.

In a Tuesday Telegram post, Tumusov outlined the growing need to create an ecosystem that allows Russian residents to purchase cryptocurrencies like Bitcoin (BTC) amid increasing demand. The official argued that despite Russia enforcing crypto legislation earlier this year, the Bank of Russia has been negligent, refusing to authorize local banks to offer crypto investment services.

Tumusov said that central bank governor Elvira Nabiullina has been speaking openly about the bank’s reluctance to deal with decentralized cryptocurrencies, focusing on a state-controlled digital ruble instead. “Reluctance or not, this will not change the situation. It is necessary not to struggle with the reality but rather to adjust to it, to respond to the challenges of the time,” Tumusov argued.

The lawmaker noted that many countries around the world offer clear tax laws and policies that allow the industry to develop. He stated that Russia needs methods to deal with crypto that aren’t just prohibitions:

“Short-sightedness can be costly for Russia. Cryptocurrencies are the reality. Either we will accept it, or we will lose.”

Related: Russian Bitcoin critic says he would have bought BTC for 100 rubles

Tumusov’s remarks on crypto come shortly after reports confirmed that major Russian banks such as private bank Tinkoff have been unable to offer crypto services due to the Bank of Russia’s tough stance on digital assets. Meanwhile, state-backed commercial banks such as Sberbank and VTB largely criticize the industry, claiming that they don’t like Bitcoin because it’s too risky.

While Russian banks are hesitant to dive into digital assets, major crypto companies like Binance have established a presence in the country. According to a June report by crypto intelligence firm Chainalysis, Russia is ranked the fifth-largest country in the world according to its estimated realized Bitcoin gains in 2020, following the United States, China, Japan and the United Kingdom.


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