Russian Central Bank Head Says “No Obvious Need” to Issue a National Cryptocurrency
Speaking at the Finopolis forum of innovative financial technologies, Elvira Nabiullina, Russian economist and head of the Central Bank of the country said the regulator doesn’t see a need to issue a national cryptocurrency, reported Russian News Agency, Tass.
“As Russia’s Central Bank, we have been studying this topic and the need to issue a national cryptocurrency is not obvious for us,”
said Nabiullina addressing Deputy Governor of the People’s Bank of China Fan Yifei.
“Not only for technological reasons, but also because it is (difficult) to really estimate what advantages will the national digital currency give, for example, in comparison with existing electronic non-cash payments. There are many risks, and the advantages may not be obvious enough,”
Back in July, Nabiullina said that one day the institution could launch its own digital currency but the technology must ensure “reliability and continuity.” But at that time as well, she said that fiat currency settlement systems are improving and already have
She has repeatedly pointed out in the past that the regulator does not support the legalization of cryptocurrencies as a legitimate payment facility.
Earlier the lower house of the Russian parliament, the State Duma adopted a bill on digital assets.
Meanwhile, Fan Yifei said China is exploring the possibility of creating a national cryptocurrency. He believes it is important to cooperate with other countries so that regulatory standards could be developed.
After five years of research, China is finally ready with its cryptocurrency which is expected to launch soon.
Fan YiFei didn’t specify the launch date but said first there is a need to conduct studies and also take into account other countries’ experience.
Cryptocurrencies and esports: reshaping modern gambling
Over the course of many centuries, gambling has proven to be very versatile and adaptive to innovations. Presently, it is going through the phase of transition from being reliant on brick-and-mortar casinos, with their limited capacity, regulatory issues, and inability to reach a broad audience, to running the operations solely on online platforms. The emergence of blockchain only incentivized the process of digitization of this industry.
Cryptocurrencies are the next evolutionary step for gambling
While Bitcoin, the first and the most influential cryptocurrency that still exerts total dominance over all other coins, wasn’t created to serve the needs of the gambling industry specifically, it paved the way for other representatives of this space.
Projects like TRON and EOS are fundamentally designed to disrupt the world of gambling by providing it with such tech solutions as provably fair algorithms for casino games, decentralized gambling applications, and, of course, cryptocurrencies to fuel these ecosystems.
But in order to apprehend the benefits of a symbiosis between cryptocurrencies and the industry of gambling, it is necessary to understand what is crypto, how it works, and what it can bring to the table.
A cryptocurrency is a type of digital asset with strong cryptography features at its core, designed to eliminate the need for a trusted third party, such as banks, to confirm and/or carry out the financial transactions. But what makes crypto and gambling go together like peanut butter and jelly is the nearly total anonymity of digital currencies, the promptness and cheapness of transactions, and the substantially enhanced security. While traditional casinos demand plenty of sensitive information from gamblers (i.e., banking details, real name, date of birth), the crypto enthusiasts have to reveal nothing but public keys when making a deposit/withdrawals. The transactions usually take no longer than a few minutes and are carried out at an almost negligent fee.
These are the primary reasons why the industry is currently witnessing the emergence of all-for-crypto gambling platforms, such as 1xBit which accepts more than 30 cryptocurrencies, assures total anonymity through the provision of the one-click registration, effortless and low-cost deposits/withdrawals, and, of course, an abundance of casino games and sports betting opportunities.
1xBit places a particular emphasis on esports since this up-and-coming phenomenon represents another disruptive factor for the gambling industry that moves in parallel with the adoption of cryptocurrencies.
Esports make the grand entrance
For decades, video games have been considered as nothing more than a form of recreation. However, the rapid development of Internet technologies and the overall sophistication of online games, along with the acquisition of the global audience, had turned this form of activity into a fully-fledged sport.
Nowadays, world championships in such disciplines as Dota 2, Counter-Strike: Global Offensive, and League of Legends draw millions of spectators from around the globe. The recognition of esports has reached such a level that the International Olympic Committee considers introducing esports to the official program of the 2024 Olympics in Paris.
Such an unprecedented surge in popularity made esports one of the main destinations for tech-savvy online sports bettors who are well aware of the benefits that cryptocurrencies will bring to this space. The crypto-oriented platforms, particularly 1xBit, took on the task of being a meeting point for cryptocurrencies, esports, and betting. There is no doubt that this combination will shape the future of the gambling industry.
China’s CBDC initiative fills private cryptocurrencies’ missing elements
The latest Binance Research, while showcasing China’s CBDC initiative, highlighted its possibility of being a renminbi (RMB) replacement. Creating a buzz in the context, the report read,
“The People’s Bank of China plans to replace China’s M0 money supply with its CBDC. Several potential improvement areas were discussed as reasons to justify this move including retail payments, interbank clearing and cross-border payments.”
Moreover, as the Chinese CBDC targets to be a substitute for China’s M0 supply, CBDC-holders would not receive any interest from the central bank if it is not parked in any financial institutions. This will ensure that China’s crypto initiative “would not compete with commercial bank deposits, and would not have a noticeable impact on the existing economy in this regard.”
Interestingly enough, China’s CBDC initiative includes “some of the missing elements” that is predominantly lacked by the private currencies. The two-layer network setup is also speculated to achieve transaction performance of “at least 300,000 transactions per second.”
Source: Binance Research
The above graph displays PBoC’s “one coin, two repositories, and three centers”approach, which was previously proposed by Yao Qian, the former head of PBoC’s Digital Currency Research Institute. Concluding the report, Binance Research mentioned,
“Despite one of the end-goals from this digital currency initiative being to further internationalize the renminbi, it remains to be seen what legislation would apply on cross-border payments.”
While the report uncovers various technical aspects of China’s crypto initiative, it remains unclear whether that individuals, based outside of China, would rely on the Chinese central bank to both maintain a consistent monetary policy and to protect their financial privacy.