Due to sanctions imposed by Western countries, Russia is reconsidering the possibility of using cryptocurrencies for cross-boarded payments.
The Central Bank of Russia agrees that cryptocurrency may be the solution for international payments.
According to the report shared by the local news portal TASS, the Bank of Russia admits that due to the geopolitical situation and various sanctions, “it is necessary to legalize cross-border settlements” using cryptocurrencies. The bank plans to do it “in the near future”.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is a Bitcoin & How Does it work? (Animated Explainer)
It is worth noting that Russian authorities have been opposing this idea for quite some time. The government even went the extra mile to launch the “On Digital Financial Assets” law, which prohibits to use crypto for any payments.
However, in the interview given to local TV channel Russia-24, Deputy Finance Minister Alexei Moiseev noted that “the situation has changed, and we are rethinking it.” It can be assumed that Moiseev refers to a significant number of sanctions imposed by Western countries.
The deputy finance minister has also highlighted that before allowing international payments, the Central Bank will have to launch a regulatory framework, which will help to ensure that crypto is not used for money laundering or paying for drugs.
Now people open crypto wallets outside the Russian Federation. It is necessary that this can be done in Russia, that this is done by entities supervised by the Central Bank, which are obliged to comply with the requirements of Anti-Money Laundering legislation, and first of all, of course, Know Your Customer requirements.
The news about Russia's plans to equip cryptocurrencies have been surfacing since May. Then, The Minister of Industry and Trade Denis Manturov highlighted that crypto payments will be legalized “sooner or later.”
On the other hand, it seems that Russia is following in the footsteps of Iran, another country heavily restrained by Western sanctions.
On August 30th, Iran authorized the use of cryptocurrency to pay for imports. Earlier that month, the country placed its first international import order worth around $10 million in crypto.
