Russia Sees No Benefit In Launching National Crypto Assets

Russia sees no benefit in launching its own national digital currency according to the head of Russia’s central bank, Elvira Nabiullina who recently argued her stance for the coming altcoin news.

It seems like most of the prominent countries and financial institutions are reconsidering their stance on national cryptocurrency. They did however cited their potential saying that cryptocurrencies allow for more flexible monetary policy but not everyone is convinced. Nabiullina argued that the monetary and in general- Russia sees no benefits into launching its own cryptocurrency. She said that the Central Bank of Russia does not see any compelling reasons to launch it.

According to a TASS report, Nabiullina stated that a CBDC has benefits that are ‘’not obvious for us’’ going against the Wall Street narrative that digital money is the future:

 “Not only for technological reasons but also because it is [difficult] to really estimate what advantages will the national digital currency give, for example, in comparison with existing electronic non-cash payments. There are many risks, and the advantages may not be obvious enough.”

Nabiullina previously stated that although there is an incentive to go crypto, the society will not be open to give up cash for digital alternatives. However, there are some signs of cash going obsolete such as in China but there are also signs of heavy reliance on physical cash in places of the world where privacy is valued or where there isn’t a good internet connection. While Russia’s central bank does not see the benefits by launching a CBDC, there is one potential benefit that might please the financial incumbents. The New York professor and economist Nouriel Roubini last year stated the central bank digital currencies:

 “CBDCs [are] likely [going to] replace all private digital payment systems. By allowing any individual to make transactions through the central bank. CBDCs would upend this arrangement, alleviating the need for cash, traditional bank accounts, and even digital payment services.”

As per the latest crypto news, some crypto banks are acknowledging his point and the Finance Minister of Germany and France already believe that the European Union should launch their own cryptocurrency as a response to Facebook’s Libra.