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**Russian Central Bank to Allow Controlled Experimental Use of Cryptocurrency in External Settlements: What This Means for the Crypto Industry**

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On April 19th, Elvira Nabiullina, the governor of the Russian Central Bank, announced that the bank plans to allow trading companies to use cryptocurrency for external settlement i

**Russian Central Bank to Allow Controlled Experimental Use of Cryptocurrency in External Settlements: What This Means for the Crypto Industry**

On April 19th, Elvira Nabiullina, the governor of the Russian Central Bank, announced that the bank plans to allow trading companies to use cryptocurrency for external settlement in a controlled “experimental” environment.

The Russian Central Bank plans to allow the use of cryptocurrency for external settlement in an “experimental” environment

The Russian Central Bank recently made an announcement that has sent ripples through the world of cryptocurrency. Governor Elvira Nabiullina revealed on April 19th, 2021, that the bank plans to allow trading companies to use cryptocurrency for external settlement in a controlled “experimental” environment. This move is a significant departure from the Central Bank’s previous stance on cryptocurrency and marks a potential sea change in how cryptocurrencies are viewed in the country. In this article, we’ll explore the implications of this announcement and what it could mean for the future of the crypto industry.

**The Backdrop: Russia’s Relationship with Cryptocurrency**

Before delving into the announcement itself, it’s worth examining the context in which it was made. Russia has had a complicated relationship with cryptocurrencies over the years, and the government has historically been wary of their potential risks. In 2019, a bill was passed prohibiting the issuance and circulation of cryptocurrencies, underlining the government’s hardline stance towards the industry. This was seen as a drastic move, given the growing popularity of cryptocurrencies around the world.
While the government banned cryptocurrency use on a consumer level, there has been significant interest in cryptocurrencies in Russia’s business circles. However, the lack of regulatory clarity had discouraged many firms from exploring their use. That’s why the Russian Central Bank’s latest announcement has generated a lot of excitement.

**The Announcement: Controlled Experimental Use of Cryptocurrency**

Governor Nabiullina stated that the bank’s current stance on the use of cryptocurrencies for settlements is negative. However, they recognize that businesses are interested in conducting operations in cryptocurrencies, especially when dealing with foreign partners. Therefore, the bank has decided to allow a “controlled sandbox” environment for businesses to experiment with cryptocurrencies.
This sandbox will be tightly regulated, and businesses will have to demonstrate to the Central Bank that they comply with anti-money laundering and terrorism financing laws. Nabiullina has stated that the bank will monitor these experiments closely and draw lessons from them, which suggests that there could be scope for the expansion of the program in the future.

**Implications for the Crypto Industry**

The Russian Central Bank’s latest announcement is likely to have far-reaching implications for the cryptocurrency industry. Firstly, it could encourage more businesses in Russia to explore the use of cryptocurrencies in settlements. This, in turn, could have a positive impact on the industry’s overall growth and credibility.
However, critics of the move have argued that the Central Bank’s sandbox approach may not be ambitious enough. Since the regulatory environment will remain tight, it’s likely that only a limited number of businesses will be willing to take part. This could limit the impact of the experiment and could constrain the industry’s potential for innovation.

**Conclusion**

While there are differing opinions on the Russian Central Bank’s announcement, it’s clear that this is a major development for the cryptocurrency industry. Over the years, Russia has been seen as a staunch opponent of cryptocurrencies, and this change in stance suggests a willingness to explore the potential benefits of the technology. However, it remains to be seen how successful these controlled experiments will be and whether or not the Russian government will be open to embracing cryptocurrencies more fully in the future.

**FAQs**

Q1. What is the Russian Central Bank’s latest announcement about cryptocurrency use?
A1. The Central Bank has announced that it will allow trading companies to use cryptocurrency for external settlements in a controlled experimental environment.
Q2. How does this announcement fit into Russia’s historical relationship with cryptocurrencies?
A2. While the Russian government has historically been skeptical of cryptocurrencies, there has been significant interest in their use among businesses.
Q3. What are the potential implications of this announcement for the crypto industry?
A3. This move could encourage more businesses to explore the use of cryptocurrencies, but critics argue that the tight regulation could limit the industry’s potential for innovation.

**Keywords**

cryptocurrency, Russian Central Bank, external settlements.

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