Last week, Russia’s central bank proposed a ban on cryptocurrency investing and mining as governments around the world tighten down on decentralised currencies. The central bank contended that bitcoin might pose a significant risk to financial stability, people’s well-being, and the bank’s monetary policy autonomy.
ESG watchers and sustainability advocates also cited possible negative environment impacts that could result from bitcoin mining.
Instead of following the central bank’s suggestion and outright banning the business, the top administration begun mulling over multiple strategies to stimulate cryptocurrency mining in the country, supported by sustainable mining practices, taxation and regulatory measures.
This week, the top policy makers suggested for the development of a roadmap for governmental control of the cryptocurrency market and circulation of cryptocurrencies, one which would guarantee transparency and lower current risks for legitimate cryptocurrency investors. The working group wanted this to be completed as soon as possible.
The central administration feared that limits on cryptocurrency circulation would stifle the growth of the blockchain industry, eventually leading to an exodus of professionals and specialists to other nations.
The working group believed that blockchain technology is currently one of the world’s fastest growing businesses, and that its advancement might considerably impact other industries and domains through smart contracts and many more areas. Furthermore, they emphasised that many successful international cryptocurrency ventures originated from Russia.
The Russian government would work with related IT associations such as APKIT, RAEC, RUSSOFT, etc, to analyse international best practices in regulating cryptocurrencies and their impact on the development of the software development industry and cloud technologies.
The upcoming work would also respond to the risks related to illegal financial activities, frauds and financial pyramids.
Terra Link Research 