Russia Moving Forward With Crypto International Settlement Experiment

The Central Bank of Russia is reportedly working on a way to use crypto for international settlements despite the country’s stringent broader stance on such assets. 

Elvira Nabiullina, head of Russia’s central bank, said it would create special organizations that could mine crypto and use it to settle payments with foreign entities, Russian news agency TASS reported Monday. 

Organizations affiliated with the state would be able to use crypto for such settlements initially, Central Bank Deputy Chairman Alexei Guznov told the Russian news outlet. Private companies may be allowed to do so in the future, he added.

Russia’s finance ministry said in February 2022 crypto should not be granted currency status — a suggestion included in a drafted law presented to the country’s parliament at the time.

Russian President Vladimir Putin signed a bill in July designed to bolster the existing ban on crypto as a method of payments for goods and services in Russia.

Despite the restrictions on crypto, Russian government officials said last year the country was in discussions about allowing the use of crypto for international trade, according to Interfax news agency. 

Such discussions followed sanctions imposed on Russia after its invasion of Ukraine.

Deputy Finance Minister Alexei Moiseev told Russia-24 in an interview in September that it was necessary to legalize cross-border settlements in cryptocurrencies. 

The Bank of Russia continues to oppose legalizing crypto exchanges, as well as crypto payments within Russia, TACC reported Monday.

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