A report on digital assets and how the new technology may be incorporated into its established financial system was recently released on Monday by the Central Bank of Russia (CBR).
A 32-page public consultation report titled “Digital Assets in Russian Federation” was released by CBR compared the new technology to the established system and asked for suggestions on how the former could be incorporated into the latter.
The article begins with a discussion on distributed ledger technology (DLT) and the creation of “new tools and services,” such as smart contracts, “digital assets,” CBDCs, cryptocurrencies, and decentralized finance applications (dapps).
Each of them falls into a distinct category, and the majority are not included in this report. It largely focuses on “digital assets,” using that term to refer to non-fungible tokens, collateralized stablecoins, and tokenized financial products.
Moreover, it was claimed that cryptocurrencies and “unsecured stablecoins” are excluded from the concept of digital finance. Although the report claimed that these new tools had a wide range of advantages,
The market for digital assets is still in its early stages of growth and, in terms of volume, is far less than the market for conventional financial instruments.
According to the bank, the major objectives when it comes to digital assets are regulation, financial stability, consumer safeguards, and compliance with AML/CFT regulations.
The Bank Of Russia Determines Priority Areas
It went on to say that based on the results of its discussions with market players, the Bank of Russia identified and prioritized areas that needed to be improved in terms of digital rights.
These include the taxation of digital rights and the circulation of digital rights within the traditional market infrastructure. In addition, the regulatory disparity between digital rights and conventional financial instruments changes to AML/CFT regulations. The circulation of digital rights issued in accordance with foreign law, and smart contract usage regulations.
The Bank of Russia, market participants, and the administrator of the information system in which digital assets are issued. Or another party may decide who should determine the correct standard conditions of a smart contract.
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It questioned the participants if they believed that digital rights issuers needed to be subject to obligatory disclosure standards and which organizations should be included in such rules.
As previously reported, Anatoly Aksakov, the chairman of the State Duma’s committee on the financial markets, announced at the very end of October that a bill regulating cryptocurrency mining had been submitted to parliament. It would also permit Russians to use cryptocurrency “as a means of payment” outside of the country. The usage of cryptocurrency for domestic payments has previously been outlawed in Moscow.