Russia, one of the biggest economies in Europe, is moving towards crypto adoption by November —- according to Kashif Raza on X. The Country’s Duma Finance Market Committee Chairman, Anatoly Aksakov, said Russia is making plans to regulate crypto in the country.
This is a move for the country to settle international trades with crypto payments. Currently, the Russian Central Bank and Finance Ministry are working together in creating by-laws for cryptocurrency in the country.
BREAKING: Russia to regulate cross-border crypto payments by November, Only select banks can participate for now. On September 1, cryptocurrencies were permitted for use in foreign trade. pic.twitter.com/nvdsB4tu7F
— Kashif Raza (@simplykashif) September 14, 2024
Russia Plans to Rollout Crypto Regulations in Batches
Initially, Russia had passed a regulation that allows the use of crypto in international transactions. However, for the regulation to be fully functional, there have to be regulatory frameworks that guide its usage in cross-border payments.
Currently the bodies responsible for financial laws in Russia are working on a comprehensive crypto regulation in the country. One of the areas in which they are focusing on right now is the category of individuals or bodies who will be the first to use crypto for international payment.
According to them, Russian Banks and other credit institutions will be the first to use crypto for international transactions. This will help the country test the waters with crypto and figure out how the decentralized finance system works. Afterward, other institutions and individuals will be allowed to use crypto in international settlements.
Will Crypto Replace Ruble in Russia?
The new financial development in Russia towards the use of cryptocurrency is only limited to cross-border or international payments. The Russian official currency Ruble, will still be used for all transactions within the country. Therefore, crypto is not replacing the Russian Ruble.
Russia Crypto Move a Threat to Dollar
The U.S. Dollar is seen as the world’s official currency by a lot of people and countries. Therefore, most countries in the world use the U.S. dollar to conduct transactions when doing business with one another — This has given the U.S. a very strong economic strength over the years.
In a bid to tackle the U.S. dollar’s strength and break its dominance in international trade, Russia, alongside some countries with strong economies formed an alliance known as the BRICS Nation.
They plan to create an alternative way of trading amongst themselves without the need for the U.S. Dollar. In fact, Russia once suggested they create a crypto stablecoin tied to the Chinese Yuan currency; this stablecoin will then be used for international payments amongst the Brics Nations.
What’s Up Next
Russia’s crypto move for international and cross-border payment could change the way countries conduct businesses amongst themselves in the future. This time, it will be interesting to see how all these plays out — whether the U.S. Dollar dominance will be affected or not in international trades.
Whichever way it goes, Russia’s push for crypto adoption in international payment shows the country’s openness towards emerging technologies. And this is a win for the cryptocurrency ecosystem.
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