Posted on 06/20/2022 2:36:54 PM PDT by SeekAndFind
The Central Bank of Russian Federation recently discussed using bitcoin and other cryptocurrencies for international settlement.
Currently, the central bank holds that Russia should only use the assets for international settlement, not within Russia.
The comments were made by the head of the central bank and oppose previous positions held by the monetary authority.
Elvira Nabiullina, head of the Central Bank of the Russian Federation, recently attended the St. Petersburg Economic Forum (SPIEF) where she commented on Russia’s use of bitcoin and other cryptocurrencies for international trade, per a report from state-media outlet Kommersant.
"Our position is that cryptocurrency should not be used as a means of calculation within the country...
...As for use in international settlements, if it does not penetrate the Russian financial system, it is possible," Nabiullina told reporters during the event.
Earlier in the event, before the remarks made by Nabiullina, First Deputy Chairman of the Central Bank Ksenia Yudaeva also stated that Russia did not object to the use of payments like bitcoin “in international transactions and international financial infrastructure."
Previously, the central bank proposed a ban on the mining and trading of cryptocurrencies this past January.
Following this announcement, Russian President Vladimir Putin openly challenged the central bank’s opinion stating the country had a “competitive advantage” in the mining sector and asked them to reconsider.
In response to Putin’s request for reconsideration, a bill was submitted to regulate bitcoin and the broader cryptocurrency ecosystem by the Russian government.
Within the same month, the Ministry of Finance released its amended version of the bill seeking to properly regulate the ecosystem.
Consequently, as the Russian government and monetary authorities have been divided on the matter, so too have individuals stationed within those authoritative positions. In fact, Denis Manturov, Minister of Industry and Trade of the Russian Federation recently stated “The question is when it will happen, how it will happen and how it will be regulated [cryptocurrencies]. Now both the Central Bank and the government are actively engaged in this.”
She should get off the METH PIPE! One of the main reasons the US DOLLAR is the world’s leading reserve currency is due to it’s STABILITY.
Bitcoin is a JOKE for long term contracts. If an entity signs a long term contract for let’s say oil deliveries every month, they want to KNOW, what will be the cost of future payments. No one other than an insane lunatic would contract in some wildly gyrating “currency” like bitcoin, not knowing if they will pay 300% more in 6 months. And no sane seller would want to settle for not knowing if they will get 300% less.
they are accepting it as payment, not based on it
you only buy as much bitcoin as you need for the transaction, the DAY OF the transaction... you don’t hold onto it
it’s same-same as a credit card transaction, that’s what it was designed for, NOT an investment
How does that change anything? 6 months from you have no clue what that day’s exchange rate will be.
I believe you made this same point months ago when trying to make the same example with real estate purchases. It was as inaccurate as it was then as it is now. No one is using crypto, or even proposing to use it, in the manner you’re suggesting.
Why would anyone want to incur extra currency exchange costs?
Read the second bullet point of your own article. It answers the question for you.
It’s not my article, and the second bullet point does not address exchange fees/costs.
I mean, it’s all right there in the article that YOU posted.
“it’s all right there in the article that YOU posted. “
Are you high or drunk? My user name is not SeekAndFind.
Oh sorry, that makes better sense, considering all of the questions you were answered directly in the article.
Russia trying to manipulate the crypto market.
Buying a bag of weed, no one cares about fees or bid/ask spreads. Making a 10,20, 50 billion dollar payment and those things are very important. That’s the reason very widely traded reserve currencies are used.
Not if you’re cut off from the SWIFT network.
it doesn’t matter the rate, you only buy the price of the oil
you want to buy $1000 of oil on July 4
on July 4, you BUY $1000 of bitcoin and give it to russia, the going price is immaterial
and if they are now going to use crypto, i guess the whole ruble thing isn’t working like they thought...
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