Government Opposes Stablecoin Bill

The government does not support the use of stablecoins in foreign trade. This position was made clear in a negative review of the federal bill, which was published on the State Duma’s website.

A stablecoin is a type of cryptocurrency whose value is pegged to an underlying asset. This asset can be a fiat currency (such as the US dollar or the yuan), another cryptocurrency (like Bitcoin), commodities (such as oil or precious metals), or securities.

The proposed bill introduces the concept of “secured stablecoins,” classifying them as digital financial assets (DFAs) that could be used in foreign trade to pay for goods and services. However, the government’s review states that this definition is incorrect because it includes the term “digital assets,” which is not defined in Russian law, and the phrase “which seek to maintain a stable value,” which does not clarify whether “secured” cryptocurrencies are considered DFAs or digital currency.

Additionally, the government believes the bill does not specify the type of collateral backing the obligations certified by stablecoins, nor does it explain why the value of secured stablecoins should only be pegged to gold. The review also notes that the use of DFAs as a means of payment in foreign trade is already provided for by existing legislation.

Recently, the Central Bank pointed out that stablecoins cannot be used as a means of payment between Russian residents. The Central Bank is also discussing the need for special regulation of digital rights to minimize credit risk for investors who invest in underlying assets.