- Bank of Russia experimenting with stablecoins in a regulatory sandbox
Reports indicate that the Bank of Russia, which is the central bank of Russia, is evaluating the performance of stablecoin technology in a regulatory sandbox. According to the bank, there is no intention for a Russian stablecoin to be used as a payment method or to act as a substitute for traditional fiat, however.
That being said, this news is a significant policy reversal from the Russian government’s negative stance towards crypto. In-fact, Russia almost banned cryptocurrency earlier in 2019 due to the government’s belief that crypto was only used for money laundering and illicit activity.
These stablecoin experiments are leading to speculation that the Russian central bank could eventually launch a central bank digital currency (CBDC), which would be a blockchain-based version of the Russian Ruble (RUB). This would make sense, since Russia’s primary ally, China, is going to launch a Chinese yuan (CNY) CBDC in the near future. However, Russia has not yet confirmed that a RUB version of the same is in the works.
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