Russia proposes creating a crypto fund for international settlements

The Russian Union of Industrialists and Entrepreneurs (RSPP) has proposed creating a crypto fund for international settlements to bypass sanctions, Vedomosti reports.

The idea involves using cryptocurrencies mined in Russia for cross-border transactions, circumventing the ban on their domestic circulation. The fund would issue digital financial assets (DFAs) pegged to cryptocurrency. These DFAs would represent a right to claim, avoiding speculative demand.

The fund is planned to be established in a special administrative region where miners can open accounts and store cryptocurrency. For foreign trade operations, the fund needs accounts on global exchanges, posing a risk of blockage, which could be resolved through a network of payment agents.

The idea has not yet been submitted to the Ministry of Finance and the Central Bank of Russia. A bill on digital currency regulation has been in the State Duma since 2022 and is yet to be adopted. Experts support the initiative, believing it allows for profit from cryptocurrency value changes without domestic circulation. However, its implementation would require changes in the Central Bank's stance and coordination with regulators.