Russia gets ready to utilize crypto in external trade
Date
9/18/2024 8:11:11 AM
(MENAFN) Russia is taking significant steps to incorporate cryptocurrency into its international trade operations, according to a report by Vedomosti, a prominent business daily. financial authorities are reportedly initiating a pilot program that involves a focus group of selected importers and banks tasked with exploring the use of digital currencies for cross-border settlements.
This focus group includes members from the Russian Chamber of Commerce and the Association of Electronics Developers and Manufacturers, along with various banking institutions. The participating companies have faced difficulties with international transactions, especially when dealing with dual-use goods—products that could be utilized for both civilian and military applications and are thus subject to international restrictions.
In a legislative move earlier this year, the Russian government authorized the Bank of Russia to permit specific companies to conduct international trade payments using digital currencies. This measure officially came into effect on September 1 and is part of a broader strategy to enhance Russia's economic resilience amid growing sanctions and trade barriers.
An unnamed source informed Vedomosti that the central bank plans to involve more participants in this experimental phase in the future, although the timeline for this expansion remains uncertain.
In a related development, President Vladimir Putin has emphasized the importance of regulating cryptocurrencies and digital assets, viewing them as a promising sector for economic development. He stressed the necessity for Russia to act swiftly in establishing a legal framework and developing infrastructure for digital assets, not only domestically but also in interactions with international partners.
Elvira Nabiullina, the head of the Russian central bank, previously indicated that the regulator aims to execute the first cross-border cryptocurrency payments by the end of this year. This initiative aligns with Russia's efforts to adapt to a changing global economic landscape, where traditional financial systems are increasingly scrutinized and challenged by geopolitical tensions.
As Russia seeks to navigate its economic relationships through innovative financial technologies, the implications for global trade and the role of cryptocurrency in international transactions could be significant. The move towards digital currencies marks a pivotal shift that could redefine how Russia engages with the global market, especially in light of ongoing sanctions and trade challenges.
MENAFN18092024000045015687ID1108687571
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.