Technology outside the legal framework: the Central Bank opposed the equating of bitcoin against foreign currencies
Material posted: Publication date: 14-09-2017
The Central Bank of Russia believes that the bitcoin and similar digital assets cannot be compared to foreign currencies. This was stated by the head of the Central Bank Elvira Nabiullina during a speech at the International banking Congress in Sochi. She noted that mechanisms for the use of cryptocurrencies are similar to the principles of financial pyramids, and therefore to hurry up with their legalization is not necessary. Thus Nabiullina has answered the statement of the Chairman of the Board of the Association "Russia" Anatoly Aksakov, who called as soon as possible to "drive" with bitcoin in the legal field.

Not foreign currency


The Chairman of the Central Bank of Russia Elvira Nabiullina said that the Central Bank opposes equating cryptocurrency and similar digital assets to foreign currencies. The head of the Central Bank said on Thursday, September 14, at the International banking Congress, which takes place in Sochi.

"We are categorically against the introduction of cryptocurrencies in regulation as cash against equating foreign currencies," — said Nabiullina.

Earlier, the Chairman of the Board of the Association "Russia" Anatoly Aksakov said that the expert Council for financial technologies in the state Duma will deal with the regulation of the market of cryptocurrency, as it must as soon as possible "to drive" in the legal field.

"One of the areas is a cryptocurrency. We have identified the problem. You need to still legalize, to define what cryptocurrency is, to determine the platform on which they should share, to enter the registry the so-called miners, thus engaging them in payment of taxes to the Russian budget", — quotes the words of Aksakov RIA Novosti.

Nabiullina noted that the current mechanisms for the use of cryptocurrency in many ways similar to principles of a financial pyramid.

"The cost is largely growing due to the fact that involved in these schemes, more and more participants. And, of course, the big question: should we legalize? We pyramid not actually legalize. We must warn investors about the high risks," — said Nabiullina.

The head of the regulator said that cryptocurrencies are risky and speculative investments. However, Nabiullina said that in General, the regulator welcomes the development of financial technologies and will continue the evaluation of the phenomenon of the cryptocurrencies.

"It is clear that the bans are rather complicated, bearing in mind that cryptocurrencies are supranational in nature. Nevertheless, even approaching the regulation, I think we need very clearly to evaluate this phenomenon. I say again: we are for the development of new technologies, including those used in the promotion of crypto-currencies," — said Nabiullina.

Эльвира Набиуллина на XV Международном банковском форуме

Director of the Russian Association of cryptocurrency and blockchain (RAKIB) Arseny Meltin in conversation with RT, said that prohibitive measures in relation to these technologies can lead to the appearance in Russia of the black market.

"It is impossible without a dialogue with the industry so take and cut off, as in this case, the field of cryptocurrencies will automatically become the shadow market. <...> Judging by the Russian attitude to the restraining points, businesses will look for alternative implementations of the cryptocurrency. For sale the miners will use foreign exchange and intermediaries. And therefore will give up some of their income abroad, although the money could stay in Russia in taxes," said Weltzin.

Fire everyone


Previously CEO of American banking conglomerate JPMorgan Chase Jamie Dimon said he would fire every employee of the Bank, which the suspect or convict to trade bitcoin or other cryptocurrency assets.

"If we had a trader sells a bitcoin, I would have fired him at the same moment, for two reasons. The first is against our rules. Second — it's stupid," said Dimon on the issue of cryptocurrencies in the course of the conference Barclays Bank in new York.

The Daimon burst into a tirade, said about the speculative nature of cryptocurrencies, in particular bitcoin, and even describe digital assets as fraud.

"You can't do business when the currency is taken from the air. This will not end well. <...> Someone will be killed, and only then the authorities recognize the problem. Bitcoin can cost at least $20 000 when that happens, but the problem eventually will Mature. This is a fraud, and personally I'm shocked that no one sees the real situation. <...> The only valid argument I heard is that if you are in Venezuela or in Ecuador, or North Korea, or if you're a drug dealer, a murderer or someone like that, you better deal with bitcoins than USD, you should bypass the system. The market for this kind of action may exist, however, this limited market," said CEO of JP Morgan Chase.

Programmer and IT tycoon John McAfee, in 2016 nominated as candidates for U.S. President from the libertarian party, said in response that the U.S. dollar is an even bigger fraud than bitcoin.

"You call bitcoin a Scam, but I bitcoin miner. We create bitcoins, and the creation of each new bitcoin costs $1000. And how much it costs to print one US dollar? So what of them then is the Scam? The dollar is worth exactly as much as the paper on which it is printed, and I and other miners create bitcoin costs about a thousand dollars. This is called proof of work. We have spent on their production is an incredible computer power and amount of electricity, so our work is worth something?" — argued McAfee in the cryptocurrency transfer on the channel CNBS.

John McAfee said that the price of cryptocurrencies is growing and their application in daily life, in which institutional bankers prefer not to pay attention.

"Of course, the price will rise and fall, and volatility will be high as all new technologies. But I assure you that no fraud here," concluded the businessman.



Tags: financial center , Russia