Cryptocurrencies can fall under legislative control in Russia

The representatives of the Central Bank of the RF (CB of the RF) don’t preclude the legislative control of cryptocurrencies in Russia. It was announced by Georgy Luntovsky, the Deputy Chairman of the Bank of Russia, during his speech at the International Banking Congress.

As a reminder, earlier, in January of the current year, the CB of the RF warned the citizens against transactioning with the use of virtual currencies. Soon after the representatives of the main regulator and law enforcement authorities announced about planned collaborative actions on the prevention of possible violation of property rights of natural and legal persons connected with the use of cryptocurrencies. In February of the current year the Bank of Russia equated, perhaps, the best known cryptocurrency – bitcoin, with financial pyramid.

Today the rhetoric of the main regulator towards virtual currencies has become more loyal. Thus Luntovsly has announced, that at the moment they are engaged, together with the government and the Bank for international settlements, in intensive work on examination of the situation on the market of cryptocurrencies. The Deputy Chairman of the Bank of Russia has recognized, that today we must not ignore the use of this currency and close our eyes to its existence, because maybe just it is the thing of the future. However, the representative of the CB of the RF has noted, that, unfortunately, similar technologies are often used by criminality, that’s why a special care should be taken in this matter.

Cryptocurrency represents counterfeit-proof digital coins, which can be kept in electronic wallets, as well as transferred from one wallet to another. At first sight cryptocurrencies are similar to ordinary electronic payment systems, but their working principle is rather different. Their fundamental distinction is that they are decentralized, i.e. there is no unified centre, issuing and controlling this currency, and each cryptowallet – is the bank itself. A set of such wallets world-wide forms a giant distribution bank, working 24 hours a day and absolutely automatically. Functioning of cryptocurrency is guaranteed only by correctness of its algorithm and is controlled by none from outside.

Herewith this system doesn’t forgive mistakes. So, if you have sent money to a wrong address or deleted your cryptowallet, without making a back-up copy, then it would be impossible to invert the process and none would pay back your money.

The value of cryptocurrencies is not secured by any assets and is not pegged to any currency of the world, its rate is determined by demand and supply in the market. The most successful cryptocurrency at the moment is bitcoin, which is abundantly used in many countries and competes with such official currencies as USD and EUR.