Gairika Mitra
Russia is set to begin trials in adopting cryptocurrency for international transactions starting September 1, 2024. This signifies Russia’s efforts to operate independently without any Western sanctions.
This move marks a turnaround in Russia’s anti-crypto stance, and it will likely bring about a lot of ease in payments, streamlining transactions for cross-border trade.
The National Payment Card System will be leveraged to swap between rubles and cryptocurrencies in these trials. The NPCS already had preexisting functions, like interbank settlement and clearing features. The success of this initiative could mean Russia would have an alternative method for cross-border transactions.
Recently, the Russian government passed two bills for cryptocurrency policy. The first bill is focused on legalizing crypto for international trade, while the second one is about exploring the legalization of cryptocurrency mining in Russia.
Russia also shared its plans this month to launch at least two cryptocurrency exchanges. One of these would be specifically designed for facilitating foreign economic activity (FEA) and trade. The other one is supposed to be established in Moscow, according to Russian business newspaper Kommersant.
Additionally, Russia has plans to consider the legal recognition of stablecoins and use them for international transactions. The Central Bank of Russia is exploring new proposals to ensure the functionality and implementation of these cryptocurrencies.
With stablecoins becoming legal in Russia, companies in the nation could function in a seamless manner particularly with regard to cross-border transactions.
Historically, Russia has maintained a strict stance on crypto, viewing it as a potential threat. But things changed in 2017 when the government started acknowledging blockchain technology, even though it had imposed several restrictions along with it.
In 2020, Russia officially recognized the Digital Financial Assets (DFA) law which allowed the buying and selling of cryptocurrencies, but it wouldn’t allow people to use it as a means of payment for goods and services.
Russian Central Bank Governor Elvira Nabiullina revealed plans to introduce a digital ruble by July 2025 during an address to the Federation Council, the Upper House of the Russian Parliament. As reported by the Russian news agency TASS, Nabiullina stated that her team aims to transition from testing to the widespread implementation of the digital ruble by this tentative date, emphasizing that the process will be gradual.
This move marks a significant step in Russia’s evolving approach to digital currencies, highlighting the country’s cautious but deliberate embrace of cryptocurrency technology as it seeks to modernize its financial system while maintaining control over monetary policy.
Read More
- Russia Unveils Plans for Crypto Exchanges to Boost Foreign Trade, Eyes Stablecoin
- Russia Takes Major Steps in Crypto Regulation Amid Evolving Stance
- From Russia with Scams: Is This Crypto’s Red Scare?
Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
