Russia Accepts Bitcoin and Crypto for Cross-Border Payments, Proposes Policy Change

• The Bank of Russia and the country’s Ministry of Finance have reached an agreement to allow cross-border payment settlements in cryptocurrencies.
• The central bank refused to accept cryptocurrency as legal tender and opposed the operation of local cryptocurrency exchanges.
• A survey report revealed that 72% of Russians have never bought Bitcoin, shedding light on BTC and crypto adoption in the country.

Russia’s Deputy Finance Minister described the acquisition and use of cryptocurrency in cross-border settlements through a new agreement. The Central Bank and the Ministry of Finance has decided to accept Bitcoin and cryptocurrencies for cross-border payment settlements.

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Russian officials approve crypto use for cross-border payment settlements

Bank of Russia and the Ministry of Finance has reportedly reached an agreement to allow the use of Bitcoin and cryptocurrencies in cross-border payment settlements. Kommersant, a Russia-based outlet, reported Thursday that Russian Deputy Finance Minister Alexei Moiseev said the government department agrees “at all” with the central bank over a rule that would allow citizens to send payments across national borders using cryptocurrency.

The proposed policy change was aimed at giving Russian citizens access to digital wallets. Moiseev was quoted in the report:

[The policy] generally describes how to acquire cryptocurrency, what can be done with it, and how it can or cannot be settled with it initially in cross-border settlements.

According to Russian news agencies The Bank of Russia is reportedly opposed to allowing crypto exchanges to operate legally and not accept cryptocurrency as legal tender. Moiseev said,

Now that people open crypto wallets outside the Russian Federation, it is necessary to do this in Russia with devices monitored by the Central Bank, which is required to comply with the requirements of anti-money laundering and Know Your Customer.

Interestingly enough, Russia has had a mixed relationship with crypto. In 2020, crypto payments were banned in Russia. In July 2022, President Vladimir Putin signed the bill, effectively banning the use of digital assets as payments.

Russia softened its stance on the use of crypto payments for cross-border settlements in May 2022when Trade Minister Denis Manturov hinted that Russia would legalize crypto payments “sooner or later.”

It is important to note that according to a JJuly 2022 survey conducted by Switzerland-based cryptocurrency wallet provider Tangem, 72% of Russian investors have never bought crypto like Bitcoin. Therefore, the proposed policy change driven by the Bank of Russia and the Ministry of Finance is likely to drive the introduction of BTC in the country.