In the present geopolitical climate, the Bank of Russia, the country’s central bank, has acknowledged that cross-border crypto payments are inevitable.
TASS reported that the Russian central bank was revising its approach to regulating cryptocurrencies and has agreed with the finance ministry to authorise cryptocurrencies for cross-border payments.
Deputy finance minister Alexei Moiseev allegedly stated that the Bank of Russia and the finance ministry anticipate legalising crypto-based international payments soon.
Moiseev elaborated on the significance of permitting local crypto services in Russia, adding that many Russians rely on foreign sites to create a crypto wallet. It is vital in Russia to include companies overseen by the central bank, which must comply with Anti-Money Laundering and Know Your Customer regulations.
Historically, Russian legislators have rejected the use of cryptocurrency as a payment mechanism. Russia issued an essential crypto regulation in 2020 titled “On Digital Financial Assets,” which restricted the use of Bitcoin (BTC) and other cryptocurrencies for payment purposes.
The Bank of Russia viewed cryptocurrency payments with scepticism because it desired to preserve the ruble as the country’s sole legal tender.
Late in 2021, the concept of crypto payments for domestic commerce in Russia emerged. Then, Russian President Vladimir Putin stated that it was still too early to utilise cryptocurrencies for trading oil and gas.
As a result of economic sanctions imposed by the West in response to Russia’s invasion of Ukraine, the situation has shifted. In May, Russia’s Minister of Industry and Trade stated that crypto payments would be legalised sooner or later.
Elvira Nabiullina, the Bank of Russia’s governor, said that cryptocurrencies could be used for cross-border payments only, provided they do not enter Russia’s domestic financial system.
The central bank has revised its approach to regulating the business, according to Moiseev, as the situation has altered. He continued that the planned infrastructure was very hard for using cryptocurrencies in cross-border transactions. “Which we certainly must legalise somehow,” he concluded.
