Russia prepares draft law to allow crypto for international trade

Russia is now preparing to use crypto for external payments.

By Staff

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Many countries have been rethinking the currency or method of payment for cross-border transactions. On the one hand, many of them want to lessen the role the dollar plays in international trade. On the other hand, several countries are starting to accept cryptocurrency as payment.

Russia is one such country that is moving forward in the latter direction. A recent report revealed that the Central Bank is weighing in on the possibility of using digital currencies like crypto for international settlements. In fact, a draft law is already being prepared.

At an event with representatives of the New People party, the Chairman of the Central Bank, Elvira Nabiullina recently revealed that the regulator can use digital assets for settlements with foreign entities. Such operations will be reportedly feasible within the framework of the experiment. 

As noted by Nabiullina, the central bank opposes the use of crypto within the state. However, such funds can be used for external payments. This likely means that special institutions will be created in Russia that will engage in mining and crypto transfer to foreign structures. Such organizations will also be reportedly engaged in operations with other digital finance. 

The Central Bank is concurrently discussing which institutions can be permitted to do the same with the government. According to the article, a state business will likely be given control of these institutions initially. Private businesses will be included in the picture going forward.

Russia is also in favor of internationalizing the Chinese yuan. In a recent speech, Putin alleged that around two-thirds of the trade between Russia and China happens with the yuan and ruble. The president went on to state that his country is in favor of using the yuan in settlements between Russia and the countries of Asia, Africa, and Latin America.

Alongside, Russia has also been making strides on the CBDC front. Russian banks are expected to start testing the digital ruble CBDC on customers soon. The process will begin after the regulatory framework is adopted by the end of April-May.

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