The Bank of Russia is exploring the legalization of stablecoins for cross-border trades, driven by local businesses seeking alternative methods to sustain trade with China amid ongoing sanctions. This move reflects the country’s efforts to maintain economic activity and trade relationships despite geopolitical challenges.
In an interview with Russia’s state newspaper Izvestia, central bank deputy governor Alexei Guznov disclosed that the proposal to legalize stablecoins for cross-border transactions is currently under discussion and has been formulated. He emphasized the goal to regulate the entire process chain, enabling individuals to transfer, accumulate, and use these assets for international payments within Russia. Guznov suggested the initiative could evolve from a temporary experiment to a permanent regulatory framework, although no specific timeline for approval was provided.
Stablecoins, unlike traditional cryptocurrencies such as Bitcoin (BTC), are typically asset-backed and issued by a central authority, addressing past concerns that led the Bank of Russia to oppose digital asset legalization. Recent shifts indicate the central bank is reconsidering its stance, with reports of major Russian metal producers turning to stablecoins for transactions with China amid severe limitations on traditional payment methods due to sanctions.
Despite these advancements, challenges remain regarding how the legalization of stablecoins would navigate compliance with international sanctions, especially since Tether has expressed readiness to adhere to sanction policies.
Most recently, to underscore its commitment to compliance, Tether partnered with Chainalysis to identify wallets potentially linked to risks or illicit and sanctioned addresses.
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