Russia Is Now Open To Crypto For International Payments

June 5, 2022 3:22 pm Comments

According to a recent report, the central bank of Russia is now apparently open to Bitcoin and crypto for international payments.

If true, this marks a new milestone for the role that crypto plays in the financial world and the rest of the global community.

Specifically, the first deputy governor of the central bank, Ksenia Yudaeva, has stated that they do not oppose the use of crypto for international transactions.

The statement was then followed up with the acknowledgement that this could create an uncertain amount of risk for the country which indicates that there are those within the country that may be opposed to it.

Still, this is a very large change in perspective given that the country once planned on banning all crypto until very recently.

BitcoinMagazine reports:

Russia’s President took the opposing position of the central bank stating “Although, of course, we also have certain competitive advantages here, especially in the so-called mining,” referring to the nation’s natural climate and energy surpluses.

The Russian government proposed a bill seeking to regulate bitcoin and other cryptocurrencies.

At the time, Andrey Lugovoy, first deputy head of the Committee on Security and Anti-Corruption for the State Duma, the federal assembly of the Russian Federation, said:

“When we talk about digital financial assets, about cryptocurrency, about the crypto market, we must understand that we are not just trying to amend certain bills, we are trying to regulate a new entity that the whole world is facing, and we must determine our position.”

Russia’s ministry of finance seems to also be supporting the motion to embrace crypto as it intends to respect Bitcoin’s role for many businesses given that they follow regulatory guidelines.

As time continues to go by, there seems to be a new trend that is happening where many are saying that it is not a matter of “if it happens”.

Instead, it is more of a matter of “when it happens” and how the central bank and government are going to work together to regulate it for better or worse.

If more governments around the world start to follow this example,  the crypto industry may be able to reach a level of adoption where it will be hard to reverse. reports:

Minister of Industry and Trade Denis Manturov has stated that crypto payments would be legalized “sooner or later in one format or another.”

Ivan Chebeskov, director of the Ministry of Finance’s Financial Policy Department, also declared last week that the Ministry was actively discussing using cryptocurrencies for international settlements.

Mounting Western sanctions have seen Russia’s access to global finances and international payment systems severely restricted.

The government is seeking to replace U.S. dollars and euros for cross-border payments and is considering multiple options, including using rubles, gold, and allowing politically friendly countries to pay for goods in their own currencies.

The head of the parliamentary Energy Committee Pavel Zavalny said in March that Russia would be open to accepting Bitcoin payments for energy exports.

Ultimately, it seems that digital assets are well on their way to establishing its own space where it may likely coexist with the existing financial systems in place.

Bitcoin is likely to be the first digital asset and its success will likely result in other prominent digital assets to start being used the same way such as XRP and XLM.

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