Russia Will Not Legalize Yet Facebook’s Cryptocurrency Libra

The Russian Deputy Finance Minister Alexei Moiseev says that the Russian Duma (parliament) will pass legislation in a few weeks, giving a legal and regulatory framework for cryptocurrencies. However, Moiseev revealed that Russia is taking a hard pass on Facebook’s stablecoin Libra, at least in the upcoming legislation.

Anatoliy Aksakov, the chairman of the financial market committee of the lower chamber of the Duma, had a similar standpoint. “In my opinion, Facebook coin won’t be legally adopted as means of payment on the territory of Russia,” he said.

As Facebook celebrates the announcement of its new cryptocurrency project Libra, many nations across the world have taken a stand against allowing the corporate entity to take hold over the global economy with its digital currency. That’s what all the finance and economy experts see coming if Libra is allowed to function freely and without regulation. All of those resisting Facebook’s digital currency share the view that allowing Facebook to build a monopoly over the world’s payment transfer systems could have devastating consequences.

Resistance to Facebook’s Cryptocurrency Libra Around the World

Even in the U.S., Representative Maxine Waters (D-California) has suggested that further development of Libra should be put on hold for the time being. At least until the U.S. Senate Banking Committee’s meeting on Libra crypto in July. “I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action,” Waters said.

In Europe, Facebook is facing harsh scrutiny on its plans for Libra. Government officials from France, England, and Germany have announced tough regulation on Libra. The French Finance Minister Bruno Le Maire warned against branding Libra as an independent and sovereign currency. Le Maire said “it is out of the question” that Libra become a sovereign currency. “It can’t and it must not happen,” he stressed. He also made the argument that the ability to issue securities, build a reserve, and be a lender of last resort belong to the state and not that of private enterprises.

As far as Russia is concerned, Aksakov stated that there are no plans to legalize the active circulation of virtual currencies that are based on public blockchains. He even went on to claim that the Russian government will prohibit such cryptocurrencies from operating inside the country to avoid any threats to the nation’s financial system.