Bank of Russia Rules Out Stablecoins for Domestic Payments

Stablecoins lack the characteristics of a universal payment method, such as the national currency, and thus their use in transactions between Russian residents is deemed unacceptable, according to a statement from the Bank of Russia.

An analytical report highlighted that the emergence of “stable coins” was a response to the excessive volatility of cryptocurrencies and the industry’s growing need for a stable payment instrument. Typically, such assets are pegged to monetary units and may resemble various financial instruments.

The global stance on stablecoins is still evolving, with no universal definition or unified regulatory approaches, the Central Bank noted.

“Current analysis shows that stablecoins are almost nowhere recognized as legal tender, as they are not as universal as national currencies. However, they can be considered investment objects and used in cross-border transactions,” Central Bank experts believe.

In terms of regulation, they pointed out that most countries lean towards the principle of “same activity — same risks — same regulation.” In practice, this could mean either the introduction of separate legislation or the application of existing norms.

Experts noted that stablecoins somewhat resemble digital rights or digital currencies. Given that Russia is actively developing regulation for these assets, its implementation for “stable coins” could be considered, they suggest.

“This issue requires comprehensive discussion,” the Central Bank emphasized.

Earlier, US Senators expressed concerns about the use of the USDT stablecoin by Russia, Iran, and North Korea to evade sanctions.