Russia to Accept Crypto For Cross-Border Payments
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Russian government officials finally took their first step towards legalizing cryptocurrency, and it works for everyone.
The Russian news magazine Kommersant reported on Thursday that the country’s Deputy Finance Minister Aleksei Moiseev and the Russian Central Bank have agreed on the use of cryptocurrency for cross-border payments.
According to the new development, residents will be able to join digital wallets and process international payments using cryptocurrencies, as reported by Kommersant.
Regulatory framework for crypto-assets
According to Deputy Minister of Finance Aleksei Moiseyev, the central priorities of the proposed policy cover customs, “acquiring cryptocurrencies, what can be done with it and how it can or cannot be used for cross-border payments at all.”
Moiseev said that the new development has been approved together with the Ministry of Finance and the Central Bank “as a whole.”
Russia already has plans to issue its own digital rubles, but the government has only recently begun to defend the use of private cryptocurrencies after years of claims that they could be used for money laundering or financing terrorism.
In the past, Russia was said to be skeptical of cryptocurrencies. Instead, the country’s regulators have shown more interest in stablecoins and central bank digital currency (CBDC).
The central bank, on the other hand, could not take a positive view of investments in cryptocurrencies, which account for about $5 billion in Russian transactions per year, and had proposed a ban on trading and mining them.
Russian news sources revealed that there were discussions between central bank and government leaders about establishing cross-border crypto payments.
However, the parties could not reach a common agreement because the Central Bank of Russia showed a strong position against the use of cryptocurrency as a legal means of payment.
According to Moiseev’s public statement on September 5:
“Now that people are opening crypto wallets outside the Russian Federation, it is necessary to do this in Russia with entities controlled by the central bank, who must comply with anti-money laundering and know the requirements of your client.”
Russia will legalize cryptocurrencies as a payment option sooner rather than later, Deputy Prime Minister and Minister of Industry and Trade Denis Manturov said earlier this month, hinting that governments and central banks are closer to resolving their differences.
The United States and many Western countries imposed sanctions on Russia for its military activities in Ukraine. However, Moscow is ready to legalize the foreign trade of cryptocurrencies, and this scenario is very close.
Russia has been trying to find a way around the growing economic restrictions of the West in a military confrontation with neighboring Ukraine.
The Ministry of Finance and the central bank have come to the conclusion that the country cannot function without financial institutions that accept cryptocurrency payments and transactions.
As mentioned above, Russian regulators have ambitious goals for Stablecoins. The Russian finance minister supports the fact that such digital assets can be used for legal transactions.
Ivan Chebeskov, head of the Financial Policy Department of the Ministry of Finance, revealed this information in a discussion on the impact of Web 3.0 held in connection with the Russian Creative Week.
According to a senior official, those higher up in his hierarchy are in favor of stablecoins being able to move freely throughout Russia.
In addition to this, he stated that the ministry is ready to help establish companies that utilize innovation in the country.
Chebeskov also discussed other topics at the meeting, including the possibility of establishing a completely new financial system. This is based not only on blockchain technology in general, but also on cryptocurrencies, digitization and tokenization.
However, despite the fact that the authorities are confident that digital currencies can lay the foundation for the eventual recovery of the financial world, it is not yet known for sure whether these currencies will be as effective as fiat currencies or not.