Russian Central will test crypto use in cross-border payments: Report

Reportedly Russia is working to establish a new entity to handle crypto mining & crypto-supported cross-border payments in the country.

Russia is a big country in the world, where crypto is still operating under a partial crypto regulation system. On 1 Jan 2021, Russia introduced a crypto regulation framework but left a very big part of the crypto sector unregulated. In Q3 2021, Russia’s central bank proposed a blanket ban framework on the crypto sector but the whole game changed after the Russia vs Ukraine conflict (Q1 2022). 

Recently local Russian news media outlets reported that during a meeting in the State Duma, the head of the central bank, Elvira Nabiullina, said that the Russian Central Bank will allow the use of cryptocurrencies in the cross-border settlement but under the pilot phase. 

The Central Bank official confirmed that it is not going to change its (Bank of Russia) stance toward cryptocurrencies in the country and here the whole thing will take place as an experiment.

“We assume that this is possible in the form of an experiment. This bill is also being prepared in the form of an experimental legal regime,” Nabiullina said.

Under the proposed Russian bill, there is also a provision to establish a “special authorized organization” to handle crypto mining and international settlements. 

The Global Digital Asset & Cryptocurrency Association chief executive officer Gabby Kusz spoke with Cointelegraph and said that China & Russia-like countries are realizing that crypto is not a new financial instrument, but instead an evolution of the exchange form of money. 

She also said that such a decision by the Russian Central Bank is showing that the country can understand that the crypto sector also has a very big contribution to the global financial system.

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