According to TechFlow, the latest report from blockchain analysis company Chainalysis pointed out that Russia is building financial infrastructure to use cryptocurrencies for international trade and circumvent Western sanctions.
The report highlights that the Russian parliament has passed bills that legalize cryptocurrency mining and allow the use of cryptocurrencies for international payments. These bills were signed into law by President Putin on August 8, and a pilot for crypto payments will begin in September this year.
The Central Bank of Russia (CBR) will oversee a pilot for cross-border cryptocurrency transactions and is testing a digital ruble, which is expected to be launched in 2025. The CBR is taking the lead in incorporating cryptocurrencies into the Russian financial system for cross-border payments.
The report states that centralized cryptocurrency exchanges in Russia, such as Garantex, could be used to process cross-border payments. Russia is also exploring other ways to circumvent Western sanctions, including blockchain initiatives with BRICS countries and possibly working with Iran to launch a gold-backed stablecoin.