Proposed Russian crypto ban reduces risk, but limits innovation, says Fitch

On Friday, the credit rating agency Fitch post A study on Russia Proposed ban on cryptocurrencies. While the report agrees with the Central Bank of Russia (CBR) stance that a ban would limit exposure to its financial system, it also warns that such a proposal could “impede the spread of productivity-enhancing technologies.”

In addition, Fitch warned:

“Assuming this slows the spread of crypto-driven innovations, such as increasing the speed and security of payments or asset liquidity through tokenization. In this case, over time, it could weaken the Russian banking sector relative to This aspect of the operating environment of peers.”

Additionally, Fitch commented on Russia’s adoption of a central bank digital currency, or CBDC, saying “[the digital ruble] The ability of authorities to monitor and manage the flow of funds, which could otherwise be eroded by the growth of cryptocurrency trading, should be improved. The report also clarified that the CBR’s main motivation for proposing draconian cryptocurrency restrictions may have been to reduce competition Opposition to its upcoming CBDC.

Like India, Russia’s cryptocurrency regulatory environment has been chaotic lately, with policymakers often Total ban on digital currency with appeal Established Regulatory FrameworkMeanwhile, even former Russian President Dmitry Medvedev has commented on the crypto ban proposal: report Reported by local news outlet rbc.ru on Friday and translated by Cointelegraph:

“Frankly, when they try to ban something, it tends to lead to the opposite of what is expected. But of course the central bank’s stance has its own reasons, which are also known.”