Russian Official Proposes State Crypto Bank to Curb Crime

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A Russian official has proposed the creation of a state-backed cryptocurrency bank to legitimize the digital asset sector and support miners.

Evgeny Masharov of the Russian Civic Chamber argued that a dedicated institution, modeled on an existing Belarusian service, would solve key issues by pulling “shadow transactions” into the legal economy, thereby replenishing state revenue and blocking a channel for financing crime.

This proposal represents Russia’s continued pivot towards crypto as it seeks ways to facilitate international trade and circumvent sanctions imposed after its invasion of Ukraine.

The country has recently moved to allow crypto products for accredited investors and has considered a ruble-pegged stablecoin.