Gref backs ban on cryptocurrency payments in Russia

The head of Sberbank, Herman Gref, backed a ban on cryptocurrencies as a means of payment on Russian territory, but added that stablecoins and derivatives of such assets should not be prohibited. This was reported by «Эхо Москвы».

He said there is no point in restricting ownership of cryptocurrencies.

“Moreover, under no circumstances should any derivatives be banned, such things as stablecoins. We have a law on digital assets, which generally allows this; it is necessary to develop this in every possible way,” said the head of Sberbank.

Gref also noted that cryptocurrencies are part of blockchain technology and regulation should be approached cautiously:

“The most important thing here is ‘not to throw the baby out with the bathwater’. Today we live in a global market, and if we over-regulate something, the competence will immediately move away from us to other jurisdictions.”

In 2018, Gref said that a state-level ban on cryptocurrencies threatens blockchain development and hampers unlocking the full potential of digital currencies.

Later, he described Bitcoin as a ‘technical instrument for transactional activity’, not an investment asset.

In 2021, cryptocurrencies are the riskiest instrument for investments.

Earlier in January last year, the bank submitted an application to the Bank of Russia for registration of a blockchain platform with the subsequent issuance of the Sbercoin stablecoin pegged to the ruble.

At the end of 2021, the Sberbank-owned company «Сбер Управление Активами» launched an exchange-traded fund focused on the shares of companies, whose main activity is related to distributed ledger technology.

The Bank of Russia in July last year urged exchanges not to list instruments tied to cryptocurrencies. In December, the central bank spoke out against investments by mutual funds in such assets.

In January, the regulator proposed to completely ban the issuing, circulation and exchange of cryptocurrencies on the territory of Russia. At the same time, the Bank of Russia stressed that this does not amount to a ban on owning digital currencies.

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