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Russia is working with friendly countries on the potential use of stablecoins in international payments, a top official has revealed. The news comes after key institutions in Moscow agreed that the Russian Federation must legalize cross-border crypto payments in the face of sanctions.
The Russian government is now working with several “friendly countries” on the establishment of clearing platforms for international settlements in stablecoins, Deputy Finance Minister Alexey Moiseev revealed, quoted by the Tass news agency.
“We are currently working with a number of countries to create bilateral platforms not to use dollars and euros,” Moiseev said, explaining that Moscow offers to use “mutually acceptable tokenized instruments” on these platforms.
The senior official further elaborated that “stablecoins can be linked to a generally recognized instrument, such as gold, whose value is clear and observable to all participants.”
Moiseev’s statement on Tuesday followed other Russian media reports indicating that his department and the central bank have reached an agreement that for Russia “it is impossible to do without cross-border cryptocurrency settlements” under the current conditions.
Moscow has been dealing with increasing Western sanctions and restrictions imposed over its decision to invade neighboring Ukraine that have severely limited its access to the global financial system. Proposals to use cryptocurrencies or stablecoins in foreign trade have gained support among top Russian officials and regulators.
The Bank of Russia has made it clear that the agreement does not mean the legalization of crypto payment and exchange operations in the country. Earlier this year, its governor Elvira Nabiullina admitted that coins can be used for payments as long as they “do not penetrate” Russia’s financial system.
The Ministry of Finance hopes to resolve any issues related to the international use of crypto-payments during the autumn session of the State Duma, the lower house of the Russian parliament. The department has been the driving force behind new legislation designed to comprehensively regulate crypto transactions in Russia.
The law “On Digital Financial Assets”, which entered into force in January 2021, only addresses some aspects of the matter, such as those relating to the circulation of digital currencies that have an issuing entity, or “digital financial assets”, and digital tokens, defined as “digital rights”. Russian lawmakers are expected to review the new bill “On Digital Currency” in the coming months and also regulate related business activities such as crypto mining, which has expanded as an industry.
Do you expect Russia to start using cryptocurrencies and stablecoins in deals with foreign trading partners? Let us know in the comments section below.
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