Russia is actively considering the inclusion of stablecoins in its forthcoming legislative bill, potentially paving the way for their official use in cross-border payments. The Deputy Governor of the Central Bank of Russia, Aleksey Guznov, recently disclosed that proposals regarding stablecoins have already been submitted, and discussions are currently in progress.
Ministry of Finance Supports Stablecoin Inclusion
According to reports, the Ministry of Finance confirmed that due diligence is being carried out. Notably, stablecoins incorporations could provide a more stable and reliable medium for international payments, compared to the volatile nature of traditional cryptocurrencies. For Russia, integrating stablecoins into its financial system could circumvent the complexities and inefficiencies associated with traditional banking channels.
However, regulatory frameworks need to address concerns related to money laundering, fraud, and cybersecurity risks associated with digital currencies. Ensuring robust oversight and creating a secure environment for stablecoin transactions will be paramount to the success of this initiative.
Russia Utilizes Crypto for External Payments
According to a report from an event with representatives from the New People Party, Elvira Nabiullina, the Central Bank Governor of Russia said the regulator can use cryptocurrencies for settlements with foreign organizations. Although the central bank opposes the use of cryptocurrency within the state, the central bank chairman noted that such funds (cryptocurrencies) can be used for external payments.
Notably, unique organizations were created to lead in the mining and transfer of cryptocurrencies to foreign exchanges. The organizations also engage in operations with other digital finances. Recall that in 2022, Russia approved cryptocurrencies for cross-border payments.
Nations Explore the Use of Stablecoin
Russia is not the only country using digital currencies and stablecoins for international settlements. Several other countries are looking for ways to reduce their dependence on the US dollar for trading, while some who recognize crypto are working tremendously towards creating regulations that will govern the use of Bitcoin (BTC) and other cryptocurrencies.
In 2022, the Philippines Central Bank (The Bangko Sentral ng Pilipinas) found stablecoins revolutionary for cross-border payments. Meanwhile, a few months ago, payment service provider Stripe reintroduced cryptocurrency payments, in the form of stablecoins.
Co-founder and President John Collison emphasized the stability and functionality of stablecoins, particularly USD Coin (USDC). Stripe will offer payment services using USDC on the Solana (SOL), Ethereum (ETH), and Polygon blockchains.
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