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Russia Assesses International Crypto Settlement Experiment

Organizations connected to the state would be able to use cryptocurrency for such transactions at first.

Despite its stricter general stance on such assets, the Central Bank of Russia is allegedly working on a means to use cryptocurrencies for cross-border payments. 

According to Russian news agency TASS, Elvira Nabiullina, the head of Russia’s central bank, stated the country will establish unique organizations that would be able to mine cryptocurrency and use it to settle payments with international organizations. 

According to Central Bank Deputy Chairman Alexei Guznov, organizations connected to the state would be able to use cryptocurrency for such transactions at first. In the future, he suggested, private corporations might be able to do this.

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The proposition was part of a draft bill that was then brought to the country’s parliament, and the Russian finance ministry previously stated that cryptocurrency should not be given currency status. In July, Russian President Vladimir Putin approved a bill intended to strengthen the country’s current ban on using cryptocurrencies to pay for products and services.

Despite the prohibitions on cryptocurrencies, Russian government officials stated last year that the nation was in discussions about permitting the use of cryptocurrencies for foreign trade. 

These negotiations came after Russia was subject to sanctions following its invasion of Ukraine. In a September interview with Russia-24, Deputy Finance Minister Alexei Moiseev stated that it was essential to legalize cross-border cryptocurrency payments. According to a report from TACC on Monday, the Bank of Russia still opposes the legalization of cryptocurrency exchanges and payments within the country.

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Sahil Pawar
Sahil Pawar
I am a graduate with a bachelor's degree in statistics, mathematics, and physics. I have been working as a content writer for almost 3 years and have written for a plethora of domains. Besides, I have a vested interest in fashion and music.


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