The Bank of Russia bets on CBDC, and the Bank of England – on the ban of BTC advertising

Reading time – 3 minutes.

The focus of media attention today is the policy of two powerful central banks – Russia and Great Britain. The Russian regulator is about to start testing the state digital ruble (CBDC) tied to the national currency. In parallel, Moscow expects to accelerate the implementation of a critical project to modernize the payment infrastructure.

Meanwhile, the Bank of England is not pedaling the CBDC topic, but again reminds citizens of the threats posed by digital currencies in general and bitcoin in particular. The British regulator claims that cryptocurrency investors should be aware of all potential risks and be prepared to lose their investment.

However, in London, they are not limited to vague hints, but are waging a decisive struggle against the widespread proliferation of digital assets. A decision is being prepared to ban advertising cryptocurrencies – with the filing of the UK Advertising Standards Authority (ASA).

Ruble: one step from fiat to digital?

Testing of the Russian regulated digital currency will begin in January. At the first stage, the Central Bank of the Russian Federation will conduct trial operations with the CBDC prototype. According to the authorities, the digital ruble should become a third form of money in addition to cash and non-cash funds.

The Bank of Russia calls a sequence of encoded data a digital ruble. Each token will be completely identical to the fiat currency – in terms of cost and functionality. The regulator has repeatedly stressed that only the central bank will be the only issuer of CBDCs. The concept of the national digital currency is based on this principle.

According to expert Antonina Levashenko from the Russian Center for Competence and Standards Analysis at RANEPA, the financial infrastructure will become more transparent and efficient. In addition, the state will be able to reduce transaction costs by integrating an innovative instrument into the banking sector.

At the same time, the Central Bank tirelessly confirms its tough position in relation to cryptocurrencies. He is especially worried about the growing popularity of bitcoin. The head of the Central Bank Elvira Nabiullina believes that BTC cannot be recognized as a means of payment, since cryptocurrency can undermine the financial stability of the state. That is why the regulator prohibits investment funds from investing in digital assets and projects focused on the cryptosphere.

Bank of England considers Bitcoin useless

The UK central bank is equally critical of BTC. Here he is directly called useless. A report released this week noted that bitcoin is fraught with risks – both for private holders and for the government. Investors should be prepared to lose all funds invested in cryptocurrency at any time. And the state is not eager to provide them with financial support.

The Deputy Governor of the Bank of England, John Cunliffe, admitted on air to the BBC – today, various categories of investors really consider Bitcoin to be an extremely popular asset. But its value changes too often, and citizens are obliged to be aware of all the potential risks of investing in cryptocurrencies.

The Central Bank’s Financial Policy Committee on Monday alarmedly announced the gradual merger of the blockchain industry with the traditional market. Very soon, bitcoin and other digital currencies will become an integral part of the global economy, so an effective mechanism for controlling the movement of virtual funds should be urgently developed.

“To influence the fast-growing digital asset market, we need a regulatory and enforcement framework – both nationally and globally – to not just manage risk, but also foster innovation and maintain confidence in the financial system,” they said. Bank of England.

Is cryptocurrency advertising blacklisted?

The UK Advertising Standards Authority has warned cryptocurrency platforms Coinbase, eToro and Luno against posting content promoting digital asset investments.

According to the regulator, trading platforms mislead the British and do not properly warn them about the risks of investing in digital tokens.

Most likely, the Advertising Standards Office will soon send appropriate warnings to all companies and services operating in the UK and representing the crypto industry.

Sources: The Guardian, CoinDesk, Twitter, Izvestia

If you find an error, please select a piece of text and press Ctrl + Enter.

Recent Posts