Russia is on the verge of launching trials for cryptocurrency exchanges and the use of digital tokens in cross-border transactions in a bid to ease payment difficulties for businesses affected by international sanctions.
According to Bloomberg, sources familiar with the matter, who asked not to be identified due to the sensitivity of the information, said the trials will begin on September 1. During these tests, Russia will use the National Payment Card System to facilitate exchanges between rubles and cryptocurrencies, both in payments and on a trial exchange platform.
In July, the Russian parliament passed legislation legalizing cryptocurrency mining and creating a framework for testing digital tokens for cross-border payments under the supervision of the central bank. President Vladimir Putin formally signed the bills on August 8.
The move to experiment with crypto comes as Russian businesses grapple with growing difficulties paying foreign suppliers and getting paid for exports, a situation made worse by tightening international sanctions. In June, the US expanded its criteria for imposing sanctions on foreign banks doing business with Russia, further complicating cross-border financial transactions.
The decision to explore cryptocurrency solutions represents a significant shift from Russia’s stance just over a year ago. In January 2022, weeks before Russia’s full-scale invasion of Ukraine, the central bank proposed a complete ban on both the use and creation of cryptocurrencies.
*This is not investment advice.
