By George Ward
The Central Bank of Russia (CBR) has published a report on crypto assets. The document examines how to integrate crypto into the country’s financial system.
According to a recent report, the CBR is considering integrating digital assets into the country’s financial system. Also, the central bank is working on how to incorporate blockchain technology.
Recently, the CBR published a consultation document dubbed “Digital Assets in Russian Federation.” The report evaluates how Russia can interact and trade with foreign issuers of crypto assets.
The main target is issuers from friendly nations, given the number of sanctions against Russia. Also, the report focused on the protection of retail investors, crypto regulation, taxation proposals, reformed accounting, digital property rights for tokenization, and smart contracts.
In the report, the CBR showed support for digital technologies. However, the bank added that it must not create cybersecurity or financial risks for users.
Besides, the CBR noted that the regulation allowing traditional financial assets should also control digital assets. This is because it relates to both issuance and circulation.
According to the body, short-term regulation should pay attention to certain areas. They include investor protection, digital asset circulation rules, and issuers’ accreditation. Also, the law must ensure transparency between issuers and investors.
Meanwhile, the report acknowledged that the country already has a regulation for digital assets. Still, the CBR believes there should be room for improvements as digital assets develop.
“Russia has developed a regulatory framework for digital assets. The framework covers both their issuance and distribution. However, the crypto sector is still at an infant stage. Hence, there must be room for involved regulation as the sector develops,” the report stated.
The CBR Working On Regulation Of Smart Contracts
Furthermore, the CBR noted that it is working on a regulatory framework for smart contracts. However, it argued that Russian-developed smart contracts must be audited independently before deployment.
The central bank also expressed optimism about the potential of tokenized off-chain assets. Still, the financial entity believes it still needs regulation. The regulation would ensure a legal document binding the token and the token holder.
Meanwhile, the recent report is coming after Russia approved crypto usage for cross-border payment. The country’s Ministry of Finance greenlighted crypto usage for cross-border payments two months ago.
Meanwhile, the document also talked about the country’s CBDC development plans. Since the EU excluded Russia from the SWIFT payment system, the government has evaluated other payment methods.
According to the central bank, the CBDC pilot program will take place in 2023. Furthermore, the CBR plans to issue the digital Ruble to Russian banks in 2024.