Russia accepts crypto for cross-border payments

Russian government official finally made their first move Legalizing cryptocurrencies works for everyone.

Russia-based news outlet Kommersant reported on Thursday that the country’s Deputy Finance Minister Alexei Moiseyev and the Bank of Russia have agreed to use cryptocurrencies for cross-border payments.

As Kommersant noted, under the new development, residents are allowed to connect to digital wallets and use cryptocurrencies to process international payments.

Crypto-asset regulatory framework

According to Deputy Finance Minister Alexei Moiseyev, the main focus of the proposed policy will be “In order to acquire cryptocurrencies, what can we do with them, how can we make cross-border payments in the first place, and can we not?”

Moiseev said the new development was jointly approved by the Ministry of Finance and the central bank “generally.”

Russia already plans to issue its own digital ruble, but the government only recently started advocating for the use of private cryptocurrencies.

Previously, Russia was reportedly still skeptical of cryptocurrencies. Instead, national regulators are showing more interest in stablecoins and central bank digital currencies (CBDCs).

Meanwhile, the central bank did not welcome Russian investments in cryptocurrencies with an annual trading volume of around $5 billion and proposed banning cryptocurrency trading and mining.

A Russian news source has revealed that there have been discussions between the central bank and government leaders regarding the establishment of cross-border cryptocurrency payments.

However, the two parties did not reach a common agreement as the Bank of Russia took a firm stance against using cryptocurrencies as legal tender.

According to Moiseev’s official statement on September 5:

“Now that people are opening cryptocurrency wallets outside the Russian Federation, in Russia this has to be done by an institution supervised by the central bank, which must comply with anti-money laundering and know-your-customer requirements. there is.”

Russia will sooner or later legalize cryptocurrencies as a payment option, Deputy Prime Minister and Minister of Industry and Trade Denis Manturov said earlier this month, suggesting that the government and central bank are close to settling their differences. .

bombing sanctions

Russia has been sanctioned by the US and many Western countries for its military activities in Ukraine. However, Moscow is poised to legalize cryptocurrency trading abroad, and this scenario is very close.

Russia has been trying to find ways around the West’s growing financial restrictions on a military confrontation with neighboring Ukraine.

The Treasury Department and central bank have concluded that the country cannot function without financial institutions accepting cryptocurrency payments and transactions.

As previously mentioned, Russian regulators have ambitious goals for stablecoins. Russia’s Finance Minister is in favor of allowing this kind of digital asset to be legally traded.

The information was disclosed by Ivan Chebeskov, head of the Monetary Policy Division at the Ministry of Finance, during a discussion on the impact of Web 3.0 held within the context of Russia’s Creative Week.

According to the official, upper echelons of his hierarchy support stablecoins to circulate freely throughout Russia.

In addition to this, the ministry said it stands ready to help establish businesses in the country using this innovation.

At this meeting, Chebeskov also discussed other topics, such as the possibility of establishing an entirely new financial system. It is based not only on blockchain technology in general, but also on crypto assets, digitization and tokenization.

But whether these currencies are as effective as fiat currencies, despite the fact that government officials are confident that digital currencies can lay the groundwork for the eventual revival of the financial environment. is not yet clearly understood. Russia accepts crypto for cross-border payments

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