Crypto Mining Can Exist, Gold Ruble Could Be an Alternative: Russian MP

The recent ban proposed by the Central Bank of Russia(CBR) on Thursday managed to surprise a lot of people around the globe as Russia itself is considered one of the leading countries when it comes to qualified specialists in the blockchain industry.

Gutenev Suggests A Gold Ruble

As reported by RIA Novosti, the Chairman of the State Duma Committee on Industry and Trade, Vladimir Gutenev stated that mining operations in the country can continue legally provided strict regulation and controls are implemented by the state.

In order to achieve this, Gutenev said that cryptocurrency mining farms must operate transparently, pay their taxes in their entirety, and operate in an environmentally friendly region.

Although Gutenev agreed with the bank’s stance on banning cryptocurrencies owing to the volatility and its use in unlawful transactions, he did believe in an alternative to them.

The MP said that Russia could have a surrogate financial product like a gold denominated stablecoin that would in all respects be controlled by the state government. 

On the same Gutenev further stated:

“That is, it would be an analogue of the gold ruble, which, if necessary, would not leave any traces in the conditions of serious and unmotivated sanctions, as well as a policy of deterrence not only in the field of military-technical cooperation, but also in the usual absolutely transparent and non-politicized economic relations”. (sic)

He also believed that such a gold ruble could help the state outmaneuver Western sanctions against large state-owned companies that share an association with the Russian government.

The Impact of the Ban

While many argue that the proposed ban played a role in the crypto market’s crash of January 21, others state that it didn’t matter much. Alex Lemberg, CEO of Nimbus, stated to Insider:

“When the biggest guy in the classroom (China’s ban) punches you in the face, you’re not really worried about the smaller guys.”

The June 2021 ban of China was what actually took the industry by storm, the proposed ban of Russia won’t bear similar effects. 

However, Russia remains firm in its proposal and is currently focusing on the pilot launch of the Digital Ruble. Acquiring the partnership of 12 other banks, the CBR is looking to test the digital currency in the near future.