Russia’s Latest Move Brings Them Closer to Cryptocurrency Adoption

Start Trading

Vladimir Putin’s government has been stepping up attempts to circumvent financial restrictions. Those imposed by the US and other countries after the Russian invasion of Ukraine. The country’s central bank said they would let stock exchanges trade in cryptos.

Overseas Payments in Cryptocurrency in Russia

According to Reuters, Russia may enable cryptocurrencies for foreign payments. For international payments, using digital currency is being intensively debated. They may also help international trade by allowing crypto as a settlement method. 

Since western sanctions have restricted Russia’s only access to traditional cross-border payment channels. The new draft bill for Russia on cryptos recommended promising modifications last month. It recommended accepting digital currencies as a non-Russified form of payment.

Russian Crypto Mining Is The Main Goal

The proposed measure also calls for creating a Russian crypto mining firm registry. The plan aims to make cryptocurrency mining lawful under a legislative structure. Many Russian ministers lobbied for the industry’s legalization, prompting the recommendations.

Denis Manturov stated earlier in May that Russia can soon achieve a BTC milestone. He stated that cryptos would get legalization as a form of payment in Russia. But, to what extent would the government and central bank regulation be willing to apply it if this does occur.

The central bank and government are closer to settling their crypto adoption disagreements. Chebeskov’s remark only adds to the country’s chances of becoming a cryptocurrency-friendly nation. Russia also intends to launch its own CBDC.

Payments Using BTC in Russia

Russia’s central bank and government were getting closer to resolving their disputes. The Russian finance ministry talked about alternatives, specifically for the central bank’s need for a total ban on BTC in February.

The minister implied that crypto would become a legal form of payment shortly. But, everyone understands that they will do this sooner or later, in some form or another. The central bank will draft these rules first, followed by the government.

Long-term Support For Cryptocurrencies

Russia’s finance ministry has acknowledged the huge potential for growth in cryptocurrency mining. The use of cryptocurrency in Russia has skyrocketed in recent months. An estimated $240B, or 12% of all cryptos, is under the Russians.

Russia, too, plans to establish its own CBDC. In contrast, central banks worldwide have expressed concern about the crypto industry’s growth. A new draft of the new law included several changes based on recent speculations. Russia’s currency isn’t accepted as payment.

Start Trading

Leave a Comment

1 Institute Trade Blog | All Rights Reserved 2022 | Disclaimer | ✉ Contact