Russia's Central Bank has warned that legalizing cryptocurrencies might "fundamentally" weaken the country's financial system.
Elizaveta Danilova, the bank's Director of Financial Stability, reportedly stated that letting cryptocurrency into the Russian financial system would result in "basic concerns."
The country's usage of tokens will be regulated by the Ministry of Finance, which aims to legitimize cryptocurrency. Trading tokens is neither forbidden nor regulated in the country at the moment, and cryptocurrency has no official status.
Danilova cautioned, however, that "legalization" may "damage residents' well-being." She said that it may jeopardize the financial system's stability and "open the door" for an increase in criminal activity.
The Central Bank, according to Danilova, did not object to the usage of cryptocurrencies in foreign settlements. The bank has the option to permit the legality of cryptocurrency mining. But more importantly, the bank aims to keep miners out of the Russian economy by having them swap their currencies on foreign
trading platforms.
Elvira Nabiullina, the long-serving Governor of the Central Bank, recently declared that her opinion of cryptocurrencies has not changed.