Fitch says proposed Russia crypto ban eases risks but curbs innovation

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Fitch says proposed Russia crypto ban eases risks but curbs innovation
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Risk and innovation might just have to go together. This credit rating agency is analysing Russia's recent crypto ban.

. Although the report agreed with the Central Bank of Russia's position that the ban would limit its financial system's exposure to risks, it also cautioned that such a proposal could"hold back the diffusion of technologies that could improve productivity.""Suppose this slows the spread of crypto-driven innovations that, for example, improve the speed and security of payments or asset liquidity via tokenization.

Additionally, Fitch commented on the adoption of a central bank digital currency, or CBDC, in Russia, saying that"[the digital ruble] should increase the authorities' capacity to monitor and manage financial flows, which might otherwise be eroded by the growth of cryptocurrency transactions.

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