BREAKING: Russian Finance Ministry Wants To Use Crypto For International Trade

By Kevin • January 9, 2023 7:54 pm • Comments

The Russian Finance ministry just revealed that it wants to use cryptocurrencies as a way to facilitate international trade for Russia.

This is quite the revelation given that the government of Russia was very against the use of digital assets only a few years ago and had wanted to ban it completely.

However, it seems that recently geo-political conflicts and concerns regarding existing methods of conducting international trade has caused the finance ministry to reconsider.

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Essentially, the finance ministry has now confirmed that this is now the preference due to convenience as the country is unable to do settlements in currencies like the USD or Euros.

Of course, in order for Russia to use crypto for international trade, the country that it is trading with also needs to be able to use crypto.

Therefore, this would only be possible between two nations that have decided to use crypto for international settlements.

CryptoNews.com reports:

Siluanov stated that the ministry did not want to “exclude the possibility of” authorizing “settlements in cryptocurrency with trading partners from other countries.” But, he stated, the “process” should “be comfortable for all parties.”

He said:

“We do not make settlements in dollars and euros. But using cryptocurrency – at least with the countries that are ready to have trade relations with us – as a possible tool for settlements…Why not?”

Siluanov added:

“If we are going to use cryptocurrency as a [tool] in our cross-border payments, then we need to make it convenient for participants in foreign economic activities.”

The important thing to note here is that this now creates the possibility of  showing the world that it is indeed possible for digital assets to be used on the worldwide stage.

This could then potentially encourage other countries that have similar economic concerns to adopt crypto for this use case as well if it turns out that it works without any issues.

Of course, just because one government entity is in support of it does not mean that all lawmakers and regulators within the country are on the same page.

Primarily, the central banks of each nation would definitely be against it and the Central Bank of Russia is no exception to that.

In fact, the central bank wants to ban it completely, but there is little to nothing that it can do if companies decide that they want to use crypto instead.

CryptoNews concludes:

Indeed, the bank has already signaled that it is prepared to create a regulated “testbed” for domestic firms who want to buy or sell goods using crypto.

The bank may be prepared to go along with the ministry’s plan – but only under the condition that the firms immediately convert any coins they receive into fiat.

The Central Bank has repeatedly insisted that it does not want cryptoassets to “enter the Russian economy.” Lawmakers have already proposed possible workarounds – including a state-run crypto exchange.

Siluanov added that the ministry “considers it necessary to gradually develop the cryptocurrency market in Russia and bring it into the legal field.” But he added that the department “has not yet struck a compromise with the Central Bank on this issue.”

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