Bank of Russia to Consider Proposal for Gold-Backed Cryptocurrency

The Bank of Russia will reportedly be reviewing a proposal to create a cryptocurrency backed by gold to be used for mutual settlements with other countries.

As for mutual settlements, we will consider, of course, your proposal on [..] a gold-backed cryptocurrency,” said Bank of Russia governor Elvira Nabiullina at the State Duma, or lower house, according to a report from TASS.

But, in my opinion, it is more important to develop settlements in national currencies,” she added, pointing out that the fiat currency settlement systems being used by the Eurasian Economic Union have “good dynamics” and are steadily improving.

Russian government softening anti-crypto stance

Russia’s government has famously taken a hardline stance against cryptocurrencies in the past. The Russian government has blocked foreign exchange platforms from operating in the country and even went so far as to block media sites that provided crypto news coverage.

It seems that country’s leadership, however, has softened its anti-crypto stance somewhat in recent years. Russia started looking into legislation for crypto in 2017, and a separate TASS report notes that there is a chance a digital assets bill may be passed during the current session of the Duma.

The report further notes, though, that Nabuillina had a big caveat for those who believe the proposal may help pave the way for crypto to enter Russia’s monetary system.

We are generally opposed to cryptocurrencies being launched into our monetary system. We do not see the possibility that cryptocurrencies could act as monetary surrogates. Definitely not in this part,” she said.