Foreigners to Be Given Anonymous Entry Points to Digital Ruble, Russian Official Suggests

According to a Russian parliament high-ranking official, foreign nationals should be allowed to purchase Russia's digital ruble via entry points that provide anonymity. This idea was circulated in Moscow to protect investors from Western sanctions.

State Duma Deputy Proposes Anonymous Digital Ruble Buys to Avoid Sanctions

Foreign investors should have the option to anonymly acquire the Russian central bank's digital currency (CBDC) to reduce the possibility of sanctions falling on them, Vladimir Gutenev, head of the State Duma Committee on Industry said on Tuesday in Telegram.

A Russian lawmaker suggested that the digital ruble (currently under development and being tested by the Central Bank of Russia along with a group of commercial bankers) should be backed up by real assets. Gutenev, quoted by Interfax news agency, elaborated:

This is essential: The domestic digital currency must be backed up by real assets. Foreign investors should have the option to buy Russian digital currency through 'anonymous entries' to avoid sanctions.

The State Duma deputy expressed support for legalization of cryptocurrency mining within Russia in his post. He believes that the country's energy-rich areas should be the base of the industry, as they offer cheap electrical energy. Vladimir Gutenev does not support charging miners higher rates.

The high-ranking Russian parliament member stated that "civilized mining and thoughtfulness when using digital currencies will open new opportunities for financial, economic, and technological sectors."

Russia is working to regulate its crypto sector in a comprehensive manner this year. The State Duma will likely review a new bill titled "On Digital Currency" at its fall session. One area of special interest is the potential use of digital currencies to bypass financial restraints imposed by Moscow's military invasion in Ukraine.

In September, the Bank of Russia and the Ministry of Finance agreed that cross-border cryptocurrency settlements were essential for the country's survival. The agreement did not include legalizing cryptocurrency as a payment method within the country. However, the monetary authority stressed that it was not about this and promised to promote its digital currency.

As an alternative to cross-border settlements, stablecoins were suggested. The digital ruble does not have any assets backing it, but the VEB.RF Institute for Research and Expertise suggested in June that a stablecoin, secured by Russia's precious gold reserves, be issued to facilitate foreign trade settlements and convert to other currencies.

Are you positive that Russia will allow foreign investors anonymity to purchase the digital ruble? Leave a comment below.

By: Lubomir Tassev
Title: Foreigners to Be Given Anonymous Entry Points to Digital Ruble, Russian Official Suggests
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Published Date: Thu, 15 Sep 2022 09:30:35 +0000

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