Russia Pushes for Cross-Border Crypto Payments by End of 2024
YEREVAN (CoinChapter.com) — The Russian State Duma is set to review key cryptocurrency legislation. On Tuesday, the Duma will consider bills to legalize cryptocurrency and regulate crypto mining. Anatoly Aksakov, head of the Duma’s financial market committee, stated that these laws are expected to pass quickly, with an effective date of September 1. This move is part of Russia’s response to international sanctions.
Putin Advocates Crypto Regulation Amid U.S. Sanctions
The push for regulation comes as Russia faces U.S. sanctions. President Vladimir Putin has stressed the importance of regulating digital currencies for both domestic use and international transactions. He noted,
“Cryptocurrencies are increasingly used in the world as a means of payment in international settlements.”
The Bank of Russia had previously warned about the risks of cryptocurrencies. However, it now supports their use in cross-border transactions. This shift reflects a need to adapt to global financial trends and manage international trade challenges.
Russia to Initiate International Crypto Payments by Year-End
The new laws will treat cryptocurrencies similarly to foreign currencies. This is crucial for businesses in Russia, providing a clear legal framework. The regulations will cover the use of digital currencies and the activities of crypto mining companies.
Elvira Nabiullina, Governor of the Bank of Russia, confirmed that The Russian Federation plans to start international crypto payments by the end of the year. She emphasized the urgency of these changes, noting the need for flexibility in implementation.
“We are already discussing the conditions of the experiment with ministries, agencies and businesses, and we expect that the first such payments will take place by the end of this year,”
Nabiullina said, adding that the regulator was ready “to show flexibility.”
Russia Adopts Digital Ruble and Tether to Navigate Sanctions
Russian commodities firms are already using cryptocurrencies for international transactions. Due to restrictions, they have turned to stablecoins like Tether for payments. This solution helps them bypass traditional banking systems, which have been greatly affected by sanctions.
Last year, The Russian Federation introduced the digital ruble, a new form of the national currency. The digital ruble will work alongside cash and non-cash rubles. This development positions the Bank of Russia as the operator of this digital currency.
Russia is also exploring digital financial assets with Iran. This effort aims to facilitate trade and reduce dependence on the U.S. dollar. Nabiullina’s announcement about launching international crypto payments by year-end underscores Russia’s commitment to, and newfound reliance on, digital currencies.
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