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Both facing sanctions, Russia and Cuba are looking at alternative options for cross-border payments, including cryptocurrencies, a Kremlin adviser has unveiled in Havana. Moscow is already developing a crypto-settlement mechanism to circumvent financial restrictions imposed over the invasion of Ukraine.
The governments of Russia and Cuba are considering the use of Russian rubles and cryptocurrencies to facilitate bilateral cooperation amid sanctions imposed on both nations. The news comes from a statement by Boris Titov, Commissioner for Entrepreneurs’ Rights under the Russian President, who visited Havana. Russia’s trade ombudsman arrived in the Cuban capital during the 38th edition of the Havana International Fair.
“All of us, Cuba and Russia, are under sanctions, the dollar turnover is the most important financial mechanism that exists in the world for mutual settlements, but today mechanisms are being developed at the level of national authorities to change the situation,” Titov told the Tass news agency.
He further elaborated that several options are currently being discussed, including settlement in rubles. But the Kremlin official also noted that businesses are often quicker to adapt and find their own ways of making payments, including through cryptocurrencies and private clearing arrangements.
The Feria Internacional de la Habana (FIHAV 2022) is held November 14-18 in the Expocuba exhibition complex on the outskirts of the city and was organized in 1983. The event is attended by representatives of companies from over 60 countries, including Brazil, Venezuela, Spain, Italy, Canada, China, Mexico, Russia and France.
Russian authorities have been pondering a more comprehensive regulatory framework for cryptoassets for several months. Lawmakers in the State Duma are expected to review a new bill “On Digital Currency” and a draft law “On Mining in the Russian Federation” tailored to fill the gaps left by the enforcement of the law “On Digital Financial Assets” in January, 2021.
While Russia’s central bank in January of this year proposed a blanket ban on most crypto-related activities, growing sanctions pressure since the launch of Russia’s “special military operation” in Ukraine in late February convinced the monetary authority to support proposals to legalize the use of decentralized digital currencies in international settlements.
In September, Russian financial authorities began designing a mechanism to facilitate the use of cryptocurrencies for payments with other nations. Earlier that month, Deputy Finance Minister Alexey Moiseev revealed that his department and the Bank of Russia had agreed that Russia “cannot do without cross-border crypto payments.”
Do you think Russia will be able to convince Cuba and other sanctioned nations to trade in rubles or cryptocurrencies? Share your thoughts on the topic in the comments section below.
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