Russia drafts bill to allow crypto for international trade

Russia drafts bill to allow crypto for international trade

Several nations around the world have reassessed their currency or method of payment for international settlements. On the one hand, a number of them intend to reduce the influence of the US dollar for trade. On the other hand, there are other nations that are opening the doors for crypto to be accepted for settlements.

Russia is one such country that is moving forward in the latter direction. A recent report revealed that the central bank is considering the possibility of using digital currencies like crypto for international settlements. In fact, a draft law is already being prepared.

Read also: Russia uses Chinese yuan for trade settlements with Asia, Africa, Latin America

Russia will use crypto for external payments

At an event with representatives of the New People party, the central bank’s chairman Elvira Nabiullina recently said that the regulator can use digital assets for settlements with foreign entities. Such operations will allegedly be feasible within the scope of the experiment. As noted by Nabiullina, the central bank is against the use of crypto in the state. However, such funds can be used for external payments. This probably means that special institutions will be created in Russia that will engage in mining and crypto transfer to foreign structures. Such organizations will also reportedly be engaged in operations with other digital finance.

The central bank consults in parallel with the government about which institutions can be allowed to do the same. The report pointed out that these institutions will probably first be handed over to a state company. Going forward, private businesses will also be added to the picture.

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Russia is also in favor of the internationalization of the Chinese yuan. In a recent speech, Putin claimed that about two-thirds of trade between Russia and China is in yuan and ruble. The president went on to state that his country is in favor of using the yuan in settlements between Russia and the countries of Asia, Africa and Latin America.

Alongside, Russia has also made progress on the CBDC front. Russian banks are expected to start testing the digital ruble CBDC on customers soon. As Watcher Guru reported, the process will start after the regulations are adopted in late April-May.

Also read: Russian banks begin testing digital ruble CBDC on customers

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