The Bank of Russia is currently analyzing the impact that stablecoins would have on the economy. As reported by iHodl Russia, the central bank of the country is testing these digital assets in a regulatory sandbox. According to Elvira Nabiullina, the Head of the Central Bank of the country, the financial regulator is interested to see the effect stablecoins have on the market.
Bank of Russia Tests Stablecoins
Russia has been analyzing cryptocurrencies and their effect on the market for a long time. Now, the central bank is testing stablecoins and how they behave in a regulatory sandbox. Nabullina explained that they are not going to be introducing stablecoins as a means of payment and they would not be a replacement for traditional money.
Several countries are analyzing the possibility to launch their own stablecoins or Central Bank Digital Currencies (CBDCs). Although there are no ongoing projects, many central banks have already analyzed the effects of these CBDCs on their respective economies.
The Bank of Russia has also focused on understanding which could be the benefits for the population. One of the main benefits is related to fast payments that can be used by large companies or financial institutions rather than by individuals. A stablecoin released by the central bank of the country would be controlled by the government but it would offer solutions to make the economy more efficient.
Russia has been working in order to release regulations for the cryptocurrency market that has been expanding in the last few years. However, some reports suggested that Russia could have banned digital assets completely. Cryptocurrencies have been accused of being used by criminals to launder money and perform illicit activities.
Switzerland Considers Risks Are Larger Than The Benefits of a CBDC
The Swiss government has recently informed that there are larger risks than benefits on an electronic Swiss franc. Switzerland is a very open country for cryptocurrencies considering that many blockchain-related firms have been settled in the country.
The Federal Council released a report informing that they have analyzed the different opportunities and risks related to the creation of a digital Franc. Nonetheless, the risks are greater than the benefits of such currency. The main worries are related to the effects this could have on financial stability.
Other countries that are thinking about issuing CBDCs include China and Sweden. However, none of them has anything ready to release.