Recently, media reports have emerged of Russian companies increasingly using stablecoins like Tether (USDT) to conduct financial transactions with their Chinese counterparts. Russian commodity companies, especially metals and timber companies, have found stablecoins to be very effective for cross-border transactions. Due to sanctions and stricter compliance measures, these companies have been struggling with payment and procurement issues.

Ivan Kozlov highlighted the efficiency of stablecoins, noting that they can be transferred in about 5-15 seconds and at a low cost. Stablecoins also help reduce the risk of overseas bank accounts being frozen, a frequent problem for Russian companies despite having multiple accounts in different countries. Stablecoins such as USDT, which are pegged to the US dollar, provide a more stable and secure means for these transactions, bypassing the traditional banking system that is vulnerable to sanctions. This reflects a broader change in the Russian regulatory landscape.

The Russian Central Bank, which once considered banning all cryptocurrencies, is now willing to experiment with using crypto payments in international transactions. In November, Governor Elvira Nabiullina expressed support for such trials, marking a significant policy change. While not unprecedented for sanctioned countries, the practice highlights the growing acceptance of stablecoins in global trade, especially in regions facing US dollar liquidity issues and capital controls.

Russian lawmakers are considering legislation to establish a legal framework for the use of stablecoins in international transactions. This shows that the utility of cryptocurrencies in bypassing traditional financial barriers is officially recognized. The Central Bank of Russia has noticed a sharp increase in cryptocurrency activity among Russians, which indicates that digital currencies are gaining wider acceptance and integration in the economy. In order to meet the demand, Russian banks are expanding their cryptocurrency-related services. For example, Rosbank began using cryptocurrencies for cross-border payments for businesses last June. Some commodity companies are also exploring barter transactions to avoid cross-border transfers altogether, which provides another way to circumvent financial restrictions.

For Russia and China, in order to deal with the complexity of international sanctions, stablecoins can provide a promising solution to maintain trade and financial stability, which highlights the resilience of cryptocurrencies and their growing importance in the global trade situation.$BTC