Russian lawmaker says govt may Allow Crypto Mining and Gold-Backed Stablecoins

A Russian government official said that the government may allow crypto mining and stable coins circulation continuously alongside the crypto trading ban. 

At present Crypto trading and mining is legal in Russia, as per the crypto law of Russia, proposed on 1 Jan 2021. But the stance of government authorities in Russia is changing. The Bank of Russia, the central bank of the country, was always against crypto adoption and now it is preparing its new report to bring a better framework-based ban on the crypto industry. 

Around a couple of days ago, the majority of the reports claimed that the Russian Central Bank proposed to impose a ban on crypto mining and trading, which means a blanket ban on the crypto industry. 

But now the whole game seems to be taking another turn. However it is not an official announcement by Russia but lawmakers noted that there are possibilities of the existence of this industry in Russia, under some provisions, as suggested through the proposal.

Vladimir Gutenev, Chairman of the State Duma Committee on Industry and Trade, shared on this matter with news media agency RIA Novosti. 

Gutenev said that the government may not allow the free circulation of cryptocurrencies because it is very risky for unqualified investors. But besides this restriction, the government will allow stablecoins, which are backed by gold value. And crypto mining operations may be allowed to operate their operations in the Russian Federation but under the provision of government control.

Gutenev also admitted that cryptocurrencies should be banned. On the other hand, he asserted that stablecoins can be used better as a financial investment product by private investors and companies. 

Gold-backed stable coin will be dubbed as Golden Ruble. The country will use the Golden Ruble to facilitate global economic relations. 

According to a few reports, if Russia will not ban crypto mining then it may not ban cryptocurrencies trading ( buy, sell & hold) because crypto mining is also part of holding crypto assets and selling them at the perfect time. So in this way, people will use the loophole to buy Bitcoin-like assets at a high price illegally. 

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