Bank of Russia Backs Cryptocurrency for International Transactions

April 17, 2024
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The Bank of Russia has thrown its support behind accelerating the adoption of cryptocurrency payments. Elvira Nabiullina, the governor of the Bank of Russia, announced the move last week, according to Russian Media.

While the Bank of Russia has historically been wary of cryptocurrencies for domestic payments due to concerns about regulatory oversight, it is now signaling its openness to their use in cross-border settlements.

However, Nabiullina emphasized the importance of introducing these crypto-based payments within a controlled experimental environment to assess their viability and mitigate potential risks.

“We recently passed legislation that allows digital financial assets to be used in settlements for overseas economic activities in the absence of experimental legal frameworks. We’ve already received three applications from businesses interested in trying this,” said First Deputy Chairman of the Central Bank Olga Skorobogatova.

Exploring national digital assets, or central bank digital currencies (CBDCs), for international transactions is already underway without a sandbox. President Vladimir Putin recently enacted legislation on March 11 to regulate CBDC usage, granting the Bank of Russia oversight over these exchanges.

The regulatory oversight underscores Russia’s commitment to exploring the potential of digital currencies in the international finance world. It aligns with earlier statements from Russian officials hinting at developing a blockchain-based payment system for BRICS, the international bloc chaired by Russia and comprising Brazil, India, China, South Africa, and other member nations.

As global financial landscapes evolve, Russia’s endorsement of cryptocurrency payments for international settlements signals a growing acceptance of digital assets as a viable means of conducting global commerce.

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