Russia is reportedly preparing to start trials involving crypto exchanges and digital tokens for cross-border transactions to circumvent international sanctions, according to Bloomberg. The trials are set to begin on September 1, aiming to ease the payment difficulties faced by domestic companies under current economic constraints.
Russia’s Shift Towards Crypto Amid Sanctions
Sources familiar with the matter revealed that Russia plans to use its National Payment Card System to enable the smooth exchange of rubles and crypto assets during the trial phase. This move follows the legislative groundwork laid in July when the Russian parliament passed bills legalizing crypto mining and establishing a framework for the supervised testing of digital tokens for cross-border payments, monitored by the central bank.
On August 8, President Vladimir Putin signed these bills into law, marking a significant step for Russian businesses struggling with payment issues due to sanctions. The situation has been further complicated by a U.S. decision in June to expand the criteria for imposing sanctions on foreign financial institutions dealing with Russia.
Interestingly, the Russian central bank, which previously proposed a ban on cryptocurrency use as recently as January 2022, has now shifted its stance. Finance Minister Anton Siluanov mentioned on August 14 that authorities are exploring ways to legalize crypto exchanges, though no concrete plans have been finalized yet.
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National Payment Card System’s Role in Trials
The National Payment Card System, established by the central bank in 2014, has been chosen to facilitate these crypto-exchange trials due to its existing infrastructure and regulatory oversight. This system, which currently manages Mir cards and Russian instant interbank payment systems, is considered well-suited for the experiment.
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While the Finance Ministry, central bank, and National Payment Card System have not commented on the development, insiders suggest that if the trials are successful, the Moscow Exchange and St. Petersburg Currency Exchange could be authorized to establish crypto platforms next year.
Cre: bitcoinist.
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