Russia’s central bank is considering gold-based cryptocurrency

The Russian central bank is considering issuing a gold-based cryptocurrency, reports the Russian news agency TASS.

According to central bank chief Elvira Nabiullina, the bank may be interested in a gold-linked cryptocurrency for international payments.

However, Nabiullina says it is more important to settle on national currencies. At a State Duma meeting, the Governor of the Central Bank referred to a successful example of the use of national currencies in settlements under the Eurasian Economic Union (EAEU) and referred to a dynamic development in this context.

Nabiullina also noted that the Russian central bank has not changed its attitude to the introduction of cryptocurrencies in the Russian monetary system and said the bank was against a scenario in which cryptocurrencies could become a substitute for paper money.

In April 2019, the Bank of Russia issued a policy paper on the Potential Advantages and Disadvantages of Digital Central Bank Currencies (CBDCs). According to the bank, CBDCs could be a less risky and liquid form of investment that could lower transaction costs in the economy. The lack of anonymity of CBDCs represents the only possible disadvantage to cash.

According to the Bank of Russia, an adviser to the Russian president had previously suggested setting up a CBDC in Crimea to help the region attract more investors and avoid sanctions.

image by Shutterstock