Russia was formerly against the use of cryptocurrency as a method of payment. Now the recent report has revealed that a geopolitically altered scenario has compelled Russia to allow cryptocurrency as a method of payment for international trade. TASS, which is a local news channel, reported this Monday that the central bank of Russia is reconsidering the idea of using cryptocurrency for international payments.
Central Bank to Reportedly Allow Cross-Border Crypto Payments
The Central Bank of Russia has agreed to the suggestion of the finance minister to make the use of cryptocurrency legal for international payments. Alexei Moiseev, Russian deputy finance minister, has reported that the finance ministry and Russian bank are possibly going to legalize cryptocurrency as a medium of international payments.
Moiseev, the Russian deputy finance minister, has described the significance of cryptocurrency. He says that many Russian people are opening their crypto wallets by using foreign venues. It is essential to be utilized in Russia. All the organizations which come under the supervision of the central bank, which are abiding by the laws like ‘Anti-Money Laundering’ and ‘Know Your Customer, as told by an official.
Formerly, Russia was against the notion of utilizing cryptocurrency for payments. Russia adopted a law named ‘ On Digital Financial Assets’ in 2020. This law forbade the use of any kind of crypto such as Bitcoin for payment of any type. Russia was doubtful about the concept of using cryptocurrency for payments.
A Skeptical Attitude of Russian Authorities toward Crypto
Due to the possible risk posed to the local currency, the ruble, a skeptical approach has been taken by the Bank of Russia toward crypto payments to protect the sole legal tender thereof from losing its worth. In the latter part of the previous year, the concept of using cryptocurrency for national exchanges was initiated.
But the then-Russian President, Vladimir Putin, negated this idea by saying that it would be untimely to decide to use cryptocurrency for payments in the exchange of gas, oil, and other such energy resources. After the Russian invasion of Ukraine, the scenario was altered. Western Powers imposed economic sanctions on Russia.
It was announced by Trade and Industry Minister in May 2022 that eventually Russia would legitimize the use of cryptocurrency no matter when and how. Elvira Nabiullina, the governor of the Bank of Russia, additionally proposed that they can use cryptocurrency for even overseas exchanges. But it is only possible when it does not cause any threat to the local financial system of the country.
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