- Russian billionaire Oleg Deripaska criticized the Bank of Russia over crypto regulation.
- The billionaire said that the central bank needs a “real financial instrument enabling independence in foreign trade settlements.”
Russian billionaire Oleg Deripaska is the latest to address the position of the Bank of Russia on crypto regulation. The business tycoon has encouraged the Bank of Russia to emulate El Salvador in adopting Bitcoin. On the 17th of June, Deripaska criticized the Bank of Russia over its strict regulations on digital assets in a post on his Telegram channel.
Billionaire advises Bank of Russia on crypto adoption
The billionaire referred to El Salvador’s groundbreaking move earlier this month, announcing Bitcoin as a legal tender. Urging the Bank of Russia to follow El Salvador’s path, Deripaska noted:
Even poor El Salvador, known for being close to oft-mentioned Honduras, has realized the need for digital currencies and taken a simple path, recognizing Bitcoin as a means of payment.
In addition, Deripaska said that Russia needs to find a way to conduct business with overseas countries effectively. According to the billionaire, the central bank should employ a “real financial instrument enabling independence in foreign trade settlements.”
Deripaska is a prominent name in Russia and was once the wealthiest in the country before the 2008 financial crisis. He established the largest charitable foundation in Russia, Voloe Delo. In addition, he founded one of the country’s largest industrial groups, Basic Element. As of June 2021, Deripaska’s wealth was estimated at $4.8 billion, according to Forbes.
In 2018, the US Department of the Treasury accused the billionaire and his companies of extortions, bribery, money laundering, and threatening the lives of competitors.
Deripaska’s comment came after Russian State Duma member Fedot Tumusov slammed the Bank of Russia for not paying proper attention to crypto amid its growing adoption all over the world. Tumusov explained in a Telegram post that the Russian government needs to create a market that allows residents to transact with cryptocurrencies like Bitcoin. He said that the Russian government has refused to authorize banks to offer crypto-related services. Tumusov stated:
Shortsightedness can be costly for Russia. Cryptocurrencies are reality. And either we will accept it, or we will lose it.
More countries to accept crypto
Furthermore, more countries are beginning to adopt cryptocurrency by creating regulations that will favor digital assets. Regulators in South Africa have started “phased and structured” rules backing crypto in the country. The county’s Intergovernmental Fintech Working Group (IFWG), with the support of Crypto Assets Regulatory (CAR) and Working Group (WG), has set out a plan to work on the regulatory groundwork that is wholly for digital asset service providers.
At the same time, Tanzanian president Samia Suluhu has implored the country’s central bank to embrace cryptocurrencies. The president added that crypto has impacted global finance significantly.
While speaking, president Suluhu noted that all East African countries are yet to make their debut in the crypto space. She advised:
My call to the Central Bank is that you should start working on that development. The Central Bank should be ready for the changes and not be caught unprepared.
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