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Russia's Central Bank Moves Forward with Crypto; US Adds Another Bureaucratic Obstacle for Banks

Updated: Aug 11, 2023

Russia’s Central Bank will launch the digital ruble for its pilot test phase on Tuesday, while the US Federal Reserve decided to require state banks who want to operate with crypto to get a written permit from the Central Bank.

Russia moves ahead with digital ruble while U.S. lags with Central Bank crypto regs.
Credit: Shutterstock. Copyright: 2019 lunopark/Shutterstock

MOSCOW - On August 9, the Russian Central Bank announced that the pilot phase of the Digital Ruble will be launched next Tuesday, August 15. On the same day, the US Federal Reserve stated that it will require state banks that want to operate with crypto to get a written permit from the Central Bank.

Russia's Central Bank Digital Ruble is on schedule

Foretoken Media has been closely following the news on the Digital Ruble. Russian lawmakers passed the bill to create a Central Bank Digital Currency on July 19 for final approval from the President. On July 24, President Putin approved the bill and paved the way for creating a Digital Ruble and the necessary platforms for it to operate.

At the time, the Central Bank of Russia said that it planned to start the tests on August 15. In their announcement on August 9, they repeated the launch date as planned. The central bank also clarified that they will cooperate with 15 Russian lenders during the pilot testing phase.

The lenders will provide digital wallets to the ones who want to use Digital Rubles. However, they won’t be allowed to create new wallets independently. Instead, they will simply facilitate the spread of the wallets created on the Central Bank’s platform.

The US increases the bureaucratic burden

On the other side of the world, the US government took a step to increase the bureaucratic burden on banks who want to use cryptocurrencies. The US Federal Reserve issued new guidelines for state members on August 9, where they addressed the usage of stablecoins by state banks.

The new guidelines require the state banks who want to use stablecoins to secure a written “non-objection” letter from the central bank. To do that, banks will have to submit an application detailing the services they want to offer using stablecoins, with a special focus on how to manage risks associated with these activities.

According to the Federal Reserve, applications’ approval will depend on whether the applicant bank can demonstrate that they have adequate control mechanisms in place to manage risks such as illicit finance, cybersecurity, liquidity, and consumer compliance.

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