- Russia is preparing a draft law to allow the use of crypto like Bitcoin and Ethereum for international settlements.
- The Central Bank of Russia is consulting with the government about which institutions will be allowed to engage in mining and crypto transfer to foreign structures.
Russia Weighs in on Using Crypto for International Settlements
Several countries are exploring alternative currencies for international settlements to reduce the influence of the US dollar. While some are opting for other fiat currencies, others are considering cryptocurrencies. Russia is among the latter group, and the Central Bank is preparing a draft law to allow the use of crypto for external payments.
Chairman of the Central Bank, Elvira Nabiullina, stated that although the central bank opposes the use of crypto within the state, digital currencies could be used for settlements with foreign entities. Special institutions will be created to engage in mining and crypto transfers to foreign structures.
The Central Bank is also consulting with the government about which institutions will be permitted to engage in these activities. Initially, state-owned companies will be entrusted, with private enterprises being added to the picture later.
Russia also aims to internationalize the Chinese yuan, with President Putin suggesting that the yuan and ruble account for two-thirds of trade between Russia and China. The president intends to use the yuan for settlements between Russia and countries in Asia, Africa, and Latin America.
CBDC Testing in Russia
In addition to preparing the draft law for crypto use, Russia is making strides on the CBDC front. Russian banks are expected to begin testing the digital ruble CBDC on customers soon after the regulatory framework is adopted by the end of April-May.
In conclusion, Russia is taking steps towards embracing cryptocurrencies for international settlements and is also making progress in developing its CBDC. These initiatives are part of a broader plan to reduce dependence on the US dollar and strengthen trade relations with other countries.