El Salvador has made headlines recently for adopting Bitcoin as legal money. According to the most recent reports from local media, Russia, on the other hand, has no plans to pursue this path.
There are no plans to make cryptocurrency legal tender.
On Tuesday, September 7, a spokesman for Russian President Dmitry Peskov announced the newest development. However, according to Peskov, Russia is not ready to take such a move in the direction of digital currency.
He emphasized unequivocally that Russia is unprepared for such actions and that there is no justification to take them at this time.
He also stated that associating cryptocurrencies with monetary instruments will only exacerbate the current financial system’s issues.
“It can do nothing but harm the financial and economic system, if we are talking about full recognition as a means of payment,” he concluded.
The Ruble continues to be the sole legal currency that all citizens and organizations must accept. They may, however, accept alternative means of payment if the contracting parties agree.
The European country has also been trying to develop a complete crypto framework, and in 2019, it was one of the first to enact cryptocurrency regulations. In January, the rules were put into effect for the first time.
The Russian Central Bank has also been working hard to create the CBDC, announcing in May that testing will begin in 2022.
The digital Ruble is likely to be separated into tiers, with the central bank opening wallets for commercial banks to hold digital Rubles. Bank clients will be able to use their bank applications to access the digital ruble wallet, but they will not use it to pay for offline bank applications. The CBDC plan is still in the works, and additional details should be available in the following months.
El Salvador is at the forefront of the Bitcoin adoption movement.
The use of cryptocurrency is growing worldwide, and El Salvador’s decision to embrace bitcoin as legal cash is set to shake up established banking systems. Despite widespread protests and worldwide criticism, El Salvador’s president, Nayib Bukele, stuck to his guns and confidence in bitcoins.
Other third-world countries with weak currencies that want to avoid the dollar’s effect on their economies might follow suit.