Russia’s Central Bank Now Allows Foreign Settlements To Use Crypto

Key Points:

  • The Governor of the Russian Central Bank said that the bank plans to allow trading companies to use crypto for external settlements.
  • In the first phase, the experiment will allow the participation of state-run institutions.
  • Some merchants believe that settling trade transactions with cryptocurrency rather than US dollars would enable them to conduct business.
Elvira Nabiullina, head of the Russian Central Bank, told RIA Novosti that the Russian central bank intends to enable trading firms to utilize cryptocurrencies for external settlements in a regulated experimental setting.
Russia's Central Bank Now Allows Foreign Settlements To Use Crypto

At a discussion with Russian State Duma MPs, Nabiullina stated:

“We adhere to the same position that within the country, cryptocurrency … should not be used, and for external payments we assume that this is possible in the form of an experiment, this bill is also being prepared in the form of an experimental legal regime.”

The central bank’s deputy chairman, Aleksey Guznov, said that an “examination” is now ongoing to identify whether enterprises should be authorized to accept cryptocurrency payments.

Nabiullina noted that the experiment would enable state-run organizations to participate in the initial phase but that private enterprises may participate in the future.

In the beginning, these will be groups with governmental involvement; nevertheless, it is not ruled out that private organizations may emerge in the future, according to Guznov.

Russia's Central Bank Now Allows Foreign Settlements To Use Crypto

Anatoly Aksakov, chairman of the State Duma Committee on the Financial Market, indicated at the end of March that the Duma would adopt mining legislation in April – the measures of accountability, including criminal ones, for illicit cryptocurrency activities are almost specified.

As a consequence of sanctions imposed by numerous Western countries and their allies, Russian importers and exporters have been barred from most international markets.

The majority of these sanctions were implemented in the aftermath of Ukraine’s start of the conflict. Yet, some merchants believe that settling trade transactions with cryptocurrency rather than the US dollar would enable them to do business.

The approval of the mining legislation will bring this activity into the legal realm and enable the establishment of law enforcement practice, which will help to ensure future complete control of problems linked to the production and circulation of digital currencies, among other things.

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