- The Bank of Russia is working on a bill to create an “experimental legal regime” for cryptocurrencies to be used exclusively in export-import deals.
- Digital assets issued inside Russia can also be used for cross-border deals on par with global decentralized cryptocurrencies.
Bank of Russia Plans to Use Crypto for Cross-Border Deals
The Bank of Russia is working on a bill that will introduce an “experimental legal regime” for cryptocurrencies to be used exclusively in export-import deals. The head of the regulatory agency, Elvira Naiullina, stated that the central bank’s plan includes creating special organizations that will be charged with mining crypto and processing payments for cross-border trade deals.
The government is also working on a bill to create a national agency to license and supervise cryptocurrency platforms operating in Russia, along with a new tax code for miners as part of the regulation. However, crypto trading and payments inside Russia will still be banned.
Special Organizations to Be Created for Mining Crypto and Processing Payments
It is not yet clear what organizations will be created to mine crypto and process payments for cross-border trade deals. BitRiver, one of Russia’s largest mining companies, previously partnered with the state-affiliated oil company Gazpromneft.
According to Naiullina’s deputy, Alexey Guznov, the Bank of Russia is in discussions with the government to define which organizations can participate in the experiment, what their business models should look like, and what banks they will be using. In the early stages of the experiment, it is likely that government-sponsored companies will participate.
Digital Assets Issued Inside Russia Can Be Used for Cross-Border Deals
Digital assets issued inside Russia, in accordance with the local law passed in 2020, can also be used for cross-border deals on par with global decentralized cryptocurrencies. The Bank of Russia and the country’s Ministry of Finance earlier agreed that Russia cannot avoid using crypto payments during the current situation, referring to the international sanctions imposed on the country to exclude it from the US dollar-powered global payment infrastructure.
In conclusion, the Bank of Russia’s plan to use crypto for cross-border deals through special organizations is an attempt to circumvent international sanctions imposed on the country, and to leverage the potential benefits of cryptocurrencies in the global marketplace. The creation of a national agency to regulate cryptocurrency platforms in Russia, along with the introduction of a new tax code for miners, shows that the country is moving towards greater regulation of the cryptocurrency industry.