Russian Central Bank Says Use Of Bitcoin For International Settlements Is “Possible”

June 17, 2022 10:31 pm Comments

The head of the Central Bank of Russia, Elvira Nabiullina, once again reaffirmed at an economic forum that Bitcoin is a possible option that the country can use for international settlements.

The head of a central bank saying that Bitcoin and digital assets can be used for international trade is certainly a huge deal and may indicate what the future holds for crypto.

The main requirement for Russia is that Bitcoin does not penetrate the Russian financial system which is true as Bitcoin is completely decentralized and can be used by anybody.

Many other Russian officials had also shared similar perspectives and did not object to Bitcoin being used for international transactions and financial infrastructure. reports:

Previously, the central bank proposed a ban on the mining and trading of cryptocurrencies this past January.

Following this announcement, Russian President Vladimir Putin openly challenged the central bank’s opinion stating the country had a “competitive advantage” in the mining sector and asked them to reconsider.

In response to Putin’s request for reconsideration, a bill was submitted to regulate bitcoin and the broader cryptocurrency ecosystem by the Russian government.

Within the same month, the Ministry of Finance released its amended version of the bill seeking to properly regulate the ecosystem.

The fact that the country’s government had such a quick change in perspective spells good news for the crypto industry.

The change may have been influenced by the recent conflict between Russia and Ukraine where the country suffered sanctions which led to the increased popularity of crypto throughout the region.

With that being said, the country is still quite divided on how crypto will continue to be used and how they should be regulated.

However, one thing for sure if that it will definitely have a place in the global financial network and it becomes more and more attractive during these times when inflation is rampant and markets are declining. reports:

Nabiullina’s statement comes after last month when her deputy, Ksenia Yudaeva, announced that the CBR is not against the use of decentralized digital assets in “international transactions and the international financial infrastructure,” signaling a softening of the regulator’s stance on crypto payments amid expanding financial sanctions on Russia.

A provision allowing crypto payments in foreign trade has since been added to a new draft law, expected to comprehensively regulate Russia’s crypto sector.

The bill “On Digital Currency” is likely to be filed with the State Duma in September, the head of the house’s Financial Market Committee Anatoly Aksakov revealed this week.

The legislation has been delayed by the ongoing debate on the future of cryptocurrencies in the Russian Federation, which led to multiple revisions in the past few months since it was submitted by the Ministry of Finance in February.

Aksakov told the daily Izvestia that lawmakers are now leaning towards stricter rules for the crypto market.

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