Former deputy head of Russia’s central bank notes positive effects of Bitcoin ban

The Bank of Russia’s stringent measures against cryptocurrencies will prevent losses to the economy, not trigger a capital outflow. This is according to the statement by the chief executive of the Analytical Credit Rating Agency (ACRA), former deputy chairman of the central bank Mikhail Sukhov writes for RIA Novosti.

In his view, the regulator is acting promptly and bases its approach on the main aspects of the negative impact of digital currencies.

“The measures proposed by the Bank of Russia will not cause capital outflows, but rather the legitimisation of capital, including that flowing into the country. With effective supervision of the operations of financial institutions, and under the oversight of the introduced prohibitions, the risks of abuse can be minimised,” Sukhov emphasised.

He concluded that public use of cryptocurrencies remains uncommon, therefore the strict measures may help prevent losses to the economy and the budget.

Earlier, on January 20, the Bank of Russia proposed to ban the issuance, circulation and exchange of cryptocurrencies, as well as the organization of such operations within Russia. The regulator stated that these digital assets (including stablecoins) are candidates to replace fiat money, but are primarily used in illegal activity.

Later the regulator initiative was criticised by Telegram founder Pavel Durov, and experts described it as «a step towards the country’s hopeless lag».

The Bank of Russia’s position was also not supported by the government, the State Duma and the security agencies. Vladimir Gutenev, chairman of the State Duma Committee on Industry and Trade, is confident that mining enterprises can be kept if they operate under strict oversight by regulatory authorities.

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