After encrypted digital currencies have become an integral part of financial assets, many countries and their central banks are seeking to develop their digital currency to face what is coming from a major digital transformation in which digital currencies are strongly present.

Recently, a Russian economist, Vasily Solodkov, head of the Banking Institute at the Higher School of Economics, stated that CBDCs, such as the so-called “digital ruble”, will not provide many advantages of cryptocurrencies such as Bitcoin.

The statement was made by “Vassily” in an interview with “Finveria” and what it carried his statements the following:

The Russian Central Bank wants to digitize its own official currency to become a competitor to cryptocurrency.

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But it is clear that the digital ruble will lose to them and will be weaker.

The digital ruble will not have the advantages that cryptocurrencies have such as anonymity, cross-border functionality, and limited supply.

This expert added:

Payment firms will likely suffer as a result of the central bank project, which would virtually eliminate the need for third-party financial service providers.

The main advantage of Bitcoin is its ability to bypass various restrictions.

You buy bitcoin, pay it to anyone, anywhere, or vice versa.

You get paid in bitcoin, you sell it and you get your money back.

Can this be done with a digital currency provided by the central bank? Most likely not.

The points described by Vasily in his statements will be relevant not only to Russia and its project for the digital ruble, but also to many other countries that are now issuing their own cryptocurrency “CBDC” and hope to get all the advantages that Bitcoin has.

Unfortunately, it cannot trade Bitcoin due to its centralization and many other different points.

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Elsewhere in Russia, Alfa Bank, the head of one of the country’s largest commercial banks, has urged the need to regulate cryptocurrencies.

Mr. Peter Avin, Chairman of the Board of Directors of Alfa Bank, said in an interview with the media agency “RBC”, saying:

I do not believe in cryptocurrency.

It seems quite natural for me to tighten up the current legislation on cryptocurrency.

No country will allow the emergence of a parallel currency.

In another development, the Russian parliament, the State Duma, approved a crypto tax bill.

According According to the Parliamentary Gazette, the House of Representatives voted in favor of the bill, which will now move towards a second reading, and could become the country’s second cryptocurrency legislation.

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The bill proposes taxing cryptocurrency trading profits, and makes it a criminal offense not to declare crypto-related taxes, with violators facing jail time if convicted.

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