According to reports, Russia is considering enabling cryptocurrency to be used for international payments. This occurs at a time when practically every Western government is scrutinizing the country.
Russia is considering allowing cryptocurrencies to be used for foreign payments, according to a Reuters report.
Ivan Chebeskov, head of the finance ministry’s financial policy department, said that the notion of employing digital currencies in transactions for international settlements is being actively researched.
According to the article, these negotiations have been going on for a while, but nothing formal has been announced as of this writing.
Chebeskov was also quoted as adding that the action will allow the government to counter western sanctions imposed in response to Russia’s invasion of Ukraine.
Denis Manturov, the head of Russia’s Industry and Trade Ministry, reportedly stated that the country will legalize cryptocurrency in some form or another sooner or later.
Now that the central bank and government are actively working on it, the question is when it will happen and how it will be controlled. However, most people are aware of this… This will be done in some form or another sooner or later.
Russian legislators and the country’s central bank appear to have opposing views on the cryptocurrency market. The Bank of Russia argued in early 2022 that digital assets are similar to a pyramid scheme and could undermine the Russian financial system. As a result, the institution advocated a total prohibition.
The Finance Ministry disagreed, claiming that developing a regulatory framework for the sector would be a preferable first step.
President Vladimir Putin has stated that cryptocurrencies (particularly the mining specialization) could provide Russia “some competitive advantages.” The political leader encouraged the central bank and the government to revisit the issue and “get some sort of consensus.”
The top authorities met in February, but, despite Putin’s request, they were unable to reach an agreement on how to approach the digital asset market. Shortly after the meeting, Russia’s Finance Minister, Anton Siluanov, stated that prohibiting cryptocurrencies is an action the Ministry will most certainly oppose. He stated that restricting bitcoin is akin to prohibiting the Internet, both of which are implausible.
