Russia’s Central Bank To Review Gold-Backed Cryptocurrency Proposal

News | May 27, 2019 By:

Elvira Nabiullina, Governor of the Bank of Russia, said that the central bank will be reviewing a proposal to create a gold-backed cryptocurrency that could be used for mutual settlements with other countries.

Speaking to the country’s parliament, the Duma, Nabiullina said that the central bank is not opposed to creating a gold-backed cryptocurrency as long as the cryptocurrency is within the framework of international settlements between Russia and elsewhere. She added that settlements in national currencies in the framework of the Eurasian Economic Union are currently developing and have “good dynamics.”

Nabiullina, however, reiterates the central bank’s previous position regarding cryptocurrencies, saying that they are against the use of cryptocurrencies in the countries monetary system.

“We are generally opposed to cryptocurrencies being launched into our monetary system,” Nabiullina said. “We do not see the possibility that cryptocurrencies could act as monetary surrogates. Definitely not in this part.”

Last year, Anatoly Aksakov, the Chairman of the Russian State Duma Committee on Financial Markets, said that “cryptocurreny is rather complicated, it is largely transboundary. So, taking into account its characteristics, we wouldn’t like to write down norms that wouldn’t work.”