Russia is considering adopt cryptocurrencies for cross-border payments to help counter the impact of Western sanctions. Therefore, the Russian government is looking for alternatives to bypass traditional payment systems.
There is a new proposal that involves the use of cryptocurrencies (including Bitcoin) for international payments. Although the Central Bank of Russia has not commented on the matter, there may be a consensus for the country to start using digital assets for cross-border payments.
Chairman of the energy committee of the Russian Congress Pavel Zavalny said at a press conference that Russia was open to accepting bitcoins for its natural resource exports.
“With Turkey, it could be lira and rubles. So there can be a variety of currencies, and this is standard practice. If they want bitcoins, we will trade bitcoins.”
According to Ivan Chebeskov, director of the Financial Policy Division of the Russian Ministry of Finance, allowing cryptocurrencies as a means of payment for international trade would help counteract the impact of Western sanctions, which have limited Russia’s access to mechanisms of exchange. traditional cross-border payment.
“When it comes to our ‘friendly’ countries like China or Turkey that don’t put pressure on us, we have been offering them the option to pay in national currencies like the ruble and the yuan for some time,” he said during an interview. .
Russia and cryptocurrencies
Russian regulators are actively fighting to control the country’s cryptocurrency market and the use of digital currencies. Notably, the Central Bank and the Ministry of Finance have opposing approaches to regulating cryptocurrencies.
The Central Bank of Russia wants to completely ban cryptocurrencies in the country, just as China has done, claiming that the activities threaten the financial stability of the country. The Ministry of Finance, however, wants to create rules that differentiate between legal and illegal markets.
Until the government starts using cryptocurrencies for payments, therefore, the Central Bank and the Ministry of Finance must come to a consensus on how to regulate the market. Discussions have been going on for months, but nothing has come of it.
sanctions against Russia
Amid economic sanctions, Russia is apparently considering leveraging cryptocurrencies like Bitcoin for cross-border payments.
According to an article in the Russian news agency interfacethe Russian Ministry of Finance is “actively” analyzing the possibility of accepting cryptocurrency payments in foreign trade agreements.
“The issue of using digital currencies for international payment transactions is being actively discussed. If the digital currency is recognized as property, in principle, in the field of barter transactions with said digital currency, it will be possible to carry out operations on foreign economic activity.” said Ivan Chebeskov.
Chebeskov’s comments come in the context of a proposal on cross-border payments that could be incorporated into the cryptocurrency regulation law that is currently under construction.
Therefore, the statements fall within Russia’s broader plans to regulate cryptocurrencies.
“This issue is being discussed and deserves attention.”added Chebeskov, who emphasized that allowing cryptocurrencies as a means of settlement would help Russia combat the impact of US sanctions.