According to a report by Bloomberg News, Russia is preparing to conduct trials for regulated cryptocurrency exchanges and the use of digital tokens in cross-border transactions. This initiative is seen as a strategic response to the payment difficulties that Russian companies are facing due to international sanctions. The trials are scheduled to begin on September 1, as reported by two sources familiar with the matter.
Bloomberg reported that these trials will utilize the National Payment Card System to manage the exchange between rubles and cryptocurrencies during the testing phase. This system, created by Russia’s central bank in 2014, currently handles Mir cards and Russian instant interbank payment systems. It was selected for the crypto-exchange trials due to its existing infrastructure for interbank settlements and clearing, which the central bank fully regulates.
Bloomberg highlighted that the Russian parliament passed legislation in July that legalized cryptocurrency mining and established a framework for testing digital tokens in cross-border payments under central bank supervision. President Vladimir Putin signed these bills into law on August 8. The introduction of these regulated crypto trials comes as Russian businesses face increasing challenges in paying international suppliers and receiving payments for exports. These difficulties have been intensified by a recent U.S. decision to expand the criteria for imposing sanctions on foreign banks working with Russia.
Interestingly, as recently as January 2022, Russia’s central bank had called for a complete ban on the use and creation of cryptocurrencies, Bloomberg noted. However, the country’s stance has significantly shifted since then. Finance Minister Anton Siluanov mentioned at a forum on August 14, according to the state-run Tass news agency, that the government is actively seeking ways to legalize crypto exchanges, although a clear solution has yet to be finalized.
Per the Bloomberg report, there are plans to potentially allow the Moscow Exchange and the St. Petersburg Currency Exchange to establish regulated crypto platforms next year, depending on the success of these trials. The sources also indicated that any existing cryptocurrency could be used during the experiment, signaling a broad approach to the types of digital tokens that might be tested.
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