Original author: Cointribune EN
Original title: Bitcoin Finally Legal in Russia for International Trade
Original source: Coinmarketcap
Compiled by: Koala, Mars Finance
Russia’s adoption of Bitcoin as an international payment method marks a historical turning point. Faced with Western sanctions and increasing economic pressure, Russia has turned to Bitcoin and other cryptocurrencies to circumvent financial barriers. The decision, approved by the State Duma, offers a new perspective for Russian businesses seeking to survive in a highly restrictive economic environment.
Bitcoin: A response to sanctions
Russia, facing tough international sanctions for its invasion of Ukraine, is seeking solutions to maintain economic exchanges.
Last June, Russia’s parliament passed at first reading a law aimed at legalizing international payments using Bitcoin.
A final vote on July 30 confirmed the bill will come into effect on September 1, 2024.
The decision is crucial for Russia, which has been without access to the SWIFT network for two years, severely limiting its ability to conduct international transactions.
The much-anticipated new legislation would bypass this exclusion, offering a lifeline to Russian businesses hit by sanctions.
Bitcoin is now recognized as a foreign currency and has become a strategic choice for international payments.
The introduction of the bill also formalizes the use of cryptocurrencies under a clear legal framework for Russian banking supervision.
The legal framework aims to prevent financial risks and ensure the safe use of cryptocurrencies in international transactions.
Its goals are twofold: to facilitate payments for businesses and to mitigate the impact of sanctions on the Russian economy.
Changes in the Central Bank’s Policy Direction
The Bank of Russia, once hesitant about cryptocurrencies, has now taken a more favorable stance.
In January 2022, the agency proposed a ban on crypto trading, arguing that crypto trading posed a threat to financial stability and monetary sovereignty.
Now, faced with the need to keep money flowing, central banks are considering using Bitcoin for cross-border payments.
The new direction marks a major reversal in Russian monetary policy.
Elvira Nabiullina, the head of Russia’s central bank, said experimental cryptocurrency payments could take place by the end of 2024.
This openness to cryptocurrencies reflects a pragmatic adaptation to current economic realities, where sanctions restrict access to traditional foreign currencies.
Digital Ruble
Alongside its cryptocurrency integration, Russia is also exploring the development of a digital version of its national currency, the ruble.
The project differs from Bitcoin and other cryptocurrencies in that it aims to create a state-controlled digital currency.
Unlike decentralized cryptocurrencies, the digital ruble will be issued by the Bank of Russia, ensuring strict oversight and regulation.
The digital ruble could offer significant advantages, especially in terms of traceability and transaction security.
However, this also raises questions about privacy protection and state control. The shift to a digital economy is accelerating, and Russia seems determined not to fall behind in the global race for financial innovation.
俄罗斯将比特币和加密货币合法化用于国际支付，代表着该国经济战略的重大转变。
To combat economic sanctions and cross-border payments challenges, Russia is turning to digital solutions to support its businesses.
The regulation of the Central Bank of Russia ensures a secure framework for these transactions, opening the way for new economic opportunities. As Russia also explores the potential of the digital ruble, Russia is moving firmly towards a digital future, adapting policies to meet contemporary challenges and exploring the frontiers of the digital economy.
