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May 27, 2022

Update on Russia Crypto Adoption

Faced with financial sanctions in response to the invasion of Ukraine, Russia authorities are intensifying their use of cryptocurrencies to circumvent the restrictions. The country’s central bank recently proposed allowing stock exchanges access to cryptocurrencies.

According to Reuters, the nation is considering allowing the use of cryptocurrencies for international transactions. Ivan Chebeskov, head of the financial policy department of the finance ministry, was quoted by Interfax on Friday as saying,

The concept of using digital currencies in international transactions is actively being discussed. As a result of western sanctions, Russia’s access to traditional cross-border payment mechanisms has been’restricted.’ Permitting crypto as a means of international trade settlement would help mitigate this effect.

Last month, it was reported that the country’s new cryptocurrency bill draft proposed positive changes. It was proposed that digital currencies could be accepted as payment methods other than the Russian Federation’s monetary unit.

The proposed legislation also calls for the creation of a registry of crypto mining businesses in Russia. The proposal aims to legalize cryptocurrency mining under a regulatory framework. After numerous Russian ministers advocated for legalizing the industry in the country, the proposals were made.

Earlier this month, Russia’s Minister of Industry and Trade Denis Manturov speculated that the country would soon make a Bitcoin breakthrough. He stated at the time that Russia would legalize cryptocurrencies as a form of payment sooner or later. The question is how it will be regulated when this occurs, given that the central bank and government are actively working on it.

The remark suggested that the Russian government and central bank may be closer to resolving their differences regarding the adoption of cryptocurrencies. The most recent statement by Chebeskov only improves the country’s chances of becoming crypto-friendly. Additionally, Russia intends to issue its own central bank-issued digital currency (CBDC).

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