Russia National Crypto Bank Approach: From Ban to Explore

Russia National Crypto Bank Proposal to Reduce Fraud & Support Miner

A senior Russian policymaker, Yevgency Masharov, has proposed creating a national crypto bank. The plan aims to bring cryptocurrency activities into the legal system, increase government revenue, and reduce fraud. Masharov says Russia National Crypto Bank initiative could also support miners and make cross-border payment safer. 

Source: X

How a Crypto Bank Could Help?

According to Masharov, a state-backed crypto-bank would be helpful in many ways if utilized in the right way. It includes the key like:

• Raise funds for the government: Rules for crypto-trading and transfers will help in tracking, and the government can make sure people pay the right amount of taxes, instead of losing revenue from hidden transactions. 

• Reduce fraud and crime: Monitoring and control over crypto-trading will assist in the hunting down of illegal works like money laundering which often uses this method because of its lack of regulation.

• Support miners and businesses: Miners will get a legal, trusted platform to trade cryptocurrency, and businesses could use digital assets for cross-border payments without worrying. It would make transactions more organised. 

From Crypto-Ban to Exploration: Bitcoin Included

In 2022, Russia’s central bank proposed the banning concept of Bitcoin and crypto-mining, showing a strict view towards digital assets as they carry risks and illicit activities with them in lack of regulations.

But in 2024, President Putin legalized Bitcoin and crypto-mining, allowing regulated financial institutions to explore crypto-products. The same year, Sberbank, the country’s largest bank, launched a bonding system tied to Bitcoin and the U.S. dollar-to-ruble exchange rate, with the plan to launch similar products on the Moscow Exchange. It allowed returns based on BTC price performance. 

Source: Ash Crypto

Conclusion: Russia’s Crypto Future

The world is moving closer to the virtual assets space everyday. Many countries are exploring cryptocurrencies in different ways, like reserves, bonds, national institutions, etc. Russia’s plan reflects Belarus’ approach, whose President recently pressured on the crypto-bank approach. Gradually but the country is moving from its previous views, and venturing into the hyping trend.