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Polygon: $1.04(-6.3%) Bitcoin: $27,137.00(-3.6%) Ethereum: $1,712.08(-3.92%) Tether: $1.00(-0.19%) BNB: $308.72(-6.33%) USD Coin: $1.00(-0.21%) XRP: $0.4789(5.6%) Cardano: $0.3446(-3.75%) Dogecoin: $0.0731(-2.38%) Lido Staked Ether: $1,661.79(-6.47%) Polygon: $1.04(-6.3%) Russia to consider using crypto for cross-border payments
September 5, 2022
Russia has always maintained very stringent rules about the possible use of cryptocurrencies as a payment method for its citizens. The "On Digital Financial Assets" law was passed in 2020, completely prohibiting the use of any cryptocurrency for payment purposes within Russia.
The Bank of Russia has always been against the idea of accepting cryptocurrencies as legal tender because of its intentions to protect and maintain the supremacy of the Russian ruble as the only legal tender in the country. The idea of crypto payments for national trades in Russia started gaining traction during late 2021 when the Russian president Vladimir Putin commented about the matter by saying that the idea of using cryptocurrencies for trades of energy resources like oil and gas was still very premature.
However, the country's invasion of Ukraine has put Russia under severe financial sanctions from the West which seems to have led to the Russian Ministry of Finance and the Central Bank to reconsider their stance towards the use of cryptocurrencies. Aleksey Moiseev, the deputy Minister of Finance, said in an interview with a local media outlet that it was becoming impossible to do cross-border settlements without using cryptocurrencies.
He also mentioned that the financial authorities have been reconsidering their previous approach to crypto because of Russia's current geopolitical conditions. Moiseev also noted that most of the Russians currently rely on foreign platforms to open a crypto wallet, so it has become important to do this in Russia so that the central bank can have better control over the Anti-Money Laundering (AML) and Know Your Customer (KYC) policies.
The governor of the Bank of Russia, Elvira Nabiullina, suggested earlier this year that cryptocurrencies were very likely to be used for cross-border payments soon, but only if they do not enter the Russian domestic financial system first.
However the Bank of Russia responded to the interview by clarifying that it is still against the idea of legalizing crypto payments within the country. The only discussions currently taking place are regarding its use for cross-border payments. A central bank representative cleared its stance in a statement to local news agency RIA Novosti by saying, "It is important to emphasize that we are not talking about the legalization of cryptocurrency as a means of payment on the territory of our country".
The Bank of Russia has always been against the idea of accepting cryptocurrencies as legal tender because of its intentions to protect and maintain the supremacy of the Russian ruble as the only legal tender in the country. The idea of crypto payments for national trades in Russia started gaining traction during late 2021 when the Russian president Vladimir Putin commented about the matter by saying that the idea of using cryptocurrencies for trades of energy resources like oil and gas was still very premature.
However, the country's invasion of Ukraine has put Russia under severe financial sanctions from the West which seems to have led to the Russian Ministry of Finance and the Central Bank to reconsider their stance towards the use of cryptocurrencies. Aleksey Moiseev, the deputy Minister of Finance, said in an interview with a local media outlet that it was becoming impossible to do cross-border settlements without using cryptocurrencies.
He also mentioned that the financial authorities have been reconsidering their previous approach to crypto because of Russia's current geopolitical conditions. Moiseev also noted that most of the Russians currently rely on foreign platforms to open a crypto wallet, so it has become important to do this in Russia so that the central bank can have better control over the Anti-Money Laundering (AML) and Know Your Customer (KYC) policies.
The governor of the Bank of Russia, Elvira Nabiullina, suggested earlier this year that cryptocurrencies were very likely to be used for cross-border payments soon, but only if they do not enter the Russian domestic financial system first.
However the Bank of Russia responded to the interview by clarifying that it is still against the idea of legalizing crypto payments within the country. The only discussions currently taking place are regarding its use for cross-border payments. A central bank representative cleared its stance in a statement to local news agency RIA Novosti by saying, "It is important to emphasize that we are not talking about the legalization of cryptocurrency as a means of payment on the territory of our country".
