Russia’s central bank has made a revelation regarding the country’s crypto transaction volume. The central bank noted that the country participates heavily when it comes to trading and investments in cryptocurrency. According to the report, the annual crypto transaction volume in the country reached RUB 350 billion ($5 billion).
But the report didn’t say whether the estimation was based on the price of Bitcoin (BTC), which has surged impressively since the report was made in July this year. The report also confirmed Russia’s position as one of the top players in the $2.8 trillion crypto market.
Russia Remains One Of The Largest Crypto Markets
Apart from its increased activities in crypto trading, Russia also has a strong presence in the crypto mining industry. However, the relationship between the financial sector and digital currencies remains limited at the moment. The Bank of Russia stated that the increased adoption of digital currencies will pose high risks for both the Russian financial market and the global market.
The report is coming when the country is having several discussions regarding cryptocurrencies. Authorities are also looking into the use of cryptocurrencies as a means to evade tax. Several other discussions are currently ongoing, including the upcoming digital ruble’s prototype launch.
Head of the Russian Federal Taxation Service (FTS), Daniil Egorov, expressed concerns that cryptocurrencies could be used to evade tax. He added that tax authorities are monitoring the situation in the crypto market. Daniil reiterated that the authorities are trying to make sure that cryptocurrencies do not hurt the nation’s taxation base.
Russia Stays On Course For CBDC Pilot
Russia’s central bank digital currency initiative is ongoing as the country hopes to develop its digital ruble prototype in 2022. The government recently announced that it’s about launching a pilot program for the CBDC project. The Bank of Russia also says the government will be charging fees for all CBDC transactions.
The transactions carried out with the digital ruble will be less than those performed via the Russian Faster Payments System (FPS). However, the fees will be considerably lower than the fees charged for wire transfers, according to the bank’s Director of Financial Technology, Kirill Pronin.