Bank of Russia to set up units for crypto mining and cross-border settlement: Report
Russia is taking further steps to ease global sanctions in place since its invasion of Ukraine in 2022. According to local media reports, the country’s central bank plans to create new institutions to mine crypto assets and settle international payments.
In a meeting of the State Duma – one of the chambers of the Russian parliament – the head of the central bank, Elvira Nabiullina, announced that the Bank of Russia would allow the use of cryptocurrency in external settlements in a pilot program. However, the move does not signal a change in the country’s crypto environment:
“We stick to the same position as in the country, cryptocurrency […] Should not be used, and for external settlements we assume that this is possible in the form of an attempt. This bill is also being drafted in the form of an experimental legal regime,” Nabiullina said, according to a translated summary of the report.
The plan includes the creation of “special authorized organizations” for crypto mining and international settlements — including transactions involving cryptocurrencies and other digital assets, said Nabiullina, a former economic adviser to Russian President Vladimir Putin.
Bank of Russia Deputy Chairman Aleksey Guznov told reporters that the bank is negotiating with the government on how the companies will operate. “Currently, a discussion is underway with the authorities so that their area of activity is clear,” Guznov said, adding that private companies may be able to contribute to these initiatives in the future.
In a statement to Cointelegraph, Gabby Kusz, CEO of the Global Digital Asset & Cryptocurrency Association, noted that Russia, China and other countries are realizing “Crypto is not a new financial product, but an evolution or fundamental change in the way individuals and organizations exchange value .”
She also highlighted that this movement will potentially affect the global financial system, including the relevance of the United States to the future of finance in the digital era:
“Overly aggressive actions that drive crypto innovation, blockchain technology, and entrepreneurs offshore only reduce America’s ability to lead geopolitically and from a monetary policy standpoint.”
This development comes after recent revelations that BRICS members – Brazil, Russia, India, China and South Africa – are working to create their own currency to facilitate trade. Speaking to Cointelegraph, Mark Lurie, CEO of DeFi software company Shipyard, noted that commodity-backed currencies used for settlement – such as those planned by BRICS countries – are not considered to replace US dollar dominance.
“While investors increasingly distrust the Fed, neither investors nor the BRICS themselves will necessarily trust the Russian-led governing body for such a currency not to devalue itself. […] Ultimately, it’s not trust, but relative trust that matters most,” Lurie said.
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