The Central Bank of the Russian Federation is eyeing a ban on the use and mining of cryptocurrencies in the country due to financial stability concerns, CNBC reported.
- In a report, the central bank proposed developing mechanisms to block transactions involving the trade of cryptocurrencies for fiat or traditional currencies, and a ban on cryptocurrency exchanges.
- The central bank cited the possible risks to financial stability given the impact of speculative demand on its rapid growth, mirroring characteristics of a financial pyramid.
- The regulator also raised the possibility of banning crypto mining, citing its risks on energy consumption, with the process having an impact on electricity and being backed primarily by fossil fuels.
Cryptocurrency transactions in Russia are estimated to have an annual volume of $5 billion. BTC is down 0.16%, ETH up 0.45%, and XRP up 0.50%.