Russia’s Crypto Legalization Looms: Central Bank Shifts Course

The Russian Central Bank now encourages the use of crypto in international transactions. This surprising decision aims to bypass the economic sanctions imposed by the West following the conflict in Ukraine.

Crypto, an unexpected economic weapon for Russia

Facing the financial isolation imposed by the West, Moscow innovates. Elvira Nabiullina, governor of the Russian Central Bank, announced a relaxation of the institution’s stance on the use of crypto in international payments.

“New financial technologies create opportunities for schemes that did not exist before. That is why we have relaxed our stance on the use of cryptos in international payments.“, she stated during a conference in Saint Petersburg.

This decision is part of a broader strategy to circumvent sanctions. Russian companies are encouraged to explore alternative payment solutions, including digital assets. This strategy aims to maintain trade flows with key partners like China, India, or the United Arab Emirates.

According to Nabiullina, “companies have become very flexible, very enterprising. They find ways to resolve this and often do not even share them with us.”

Towards a new global financial system?

The Russian initiative could catalyze the creation of a parallel financial system. The BRICS, of which Russia is a member, are already working on the “BRICS Bridge,” a multilateral digital settlement and payment platform. This project aims to reduce dependency on the Western financial system dominated by the dollar.

However, Nabiullina tempers expectations, emphasizing that the development of such a system “will take time.”

The recent expansion of the BRICS to ten countries, now including Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates, could accelerate this process, creating an economic bloc capable of challenging Western financial hegemony.