Key takeaways:
- Ivan Cheneskov, Head of the finance ministry’s financial policy department, said the idea of cryptocurrency-based international transactions is “being actively discussed”, per Interfax
- Russia’s central bank called for a blanket ban on crypto in early 2022, but has since changed its stance and is working on crypto legislation
- Russia looks to crypto to bypass sanctions enacted by Western countries
Russian officials consider allowing crypto for “international settlements”
According to Reuters citing reports by the Interfax news outlet, the Russian officials are “actively” discussing the idea of using cryptocurrencies in “transactions for international settlements.” The leading official in the country’s finance ministry policy department, Ivan Chebeskov, revealed that cryptocurrencies could be a viable option for the country to partly bypass Western sanctions.
The news comes roughly two weeks after the comments made by Industry and Trade Minister Denis Manturov who said that cryptocurrency legislation is coming “sooner or later”. “The question is, when this happens, how it will be regulated,” Manturov remarked at the time.
In late January, Russia’s central bank’s proposal of a blanket ban on crypto was met with stern resistance by the country’s tech and opposition leaders. Since then, the central bank has shifted its stance and is actively working on cryptocurrency legislation that would allow digital currencies to be used as a means of payment.
In the aftermath of Russia’s attack on Ukraine, numerous financial firms severed ties with Russian-based businesses. Leading payment processing firms Visa and Mastercard, for instance, have withdrawn from the country, following the removal of several Russian banks from the SWIFT interbank messaging system. Meanwhile, cryptocurrency companies like Binance and Coinbase have also responded to the sanctions with their respective restrictive measures.
