Bitrabo Editorial
Recent reports indicate that Russia is looking to conduct trials involving cryptocurrency exchanges and digital tokens for cross-border transactions to circumvent international sanctions, with the initiative set to commence on September 1.
Russia’s Strategic Shift towards Cryptocurrency Amid Sanctions
Sources familiar with the matter revealed that Russia plans to use its National Payment Card System to enable the exchange between rubles and cryptocurrencies during the trial phase, following legislative approval in July legalizing crypto mining and supervised testing of digital tokens for cross-border payments.
President Vladimir Putin endorsed these bills into law on August 8, signaling official support for the exploration of cryptocurrencies as a solution to payment challenges faced by Russian companies amidst economic constraints caused by sanctions.
The move into the crypto sector comes at a crucial time for Russian businesses struggling with payment hurdles in international trade, especially after the US decision in June to expand criteria for imposing sanctions on foreign financial institutions dealing with Russia.
While the central bank had previously considered banning cryptocurrencies, recent developments have seen a shift in regulatory stance, with Finance Minister Anton Siluanov confirming active discussions on legalizing crypto exchanges without a finalized strategy.
National Payment Card System at the Center of Trials
The National Payment Card System, overseen by the central bank and managing key financial systems in Russia, has been chosen as the platform for these crypto-exchange trials due to its established infrastructure for interbank settlement and regulatory oversight.
Although official representatives from the Finance Ministry, central bank, and National Payment Card System have not commented on this initiative, insiders suggest potential expansion to other exchanges like the Moscow Exchange and St. Petersburg Currency Exchange in the future.
Image Source: DALL-E, TradingView.com