Russia to Experiment With Crypto for International Trade Despite Sanctions

• Russia’s Deputy Finance Minister Alexey Moiseev has indicated that cryptocurrency could be used in international settlements.
• A special committee is being set up to issue permits for operators using crypto in foreign trade transactions.
• The draft law regulating this matter is still under consideration in the State Duma with a potential delay until the end of the year.

Russia Considers Using Crypto for Foreign Trade

Cryptocurrency may have a bad reputation among investors, but it could be useful in international settlements according to Russian authorities. Alexey Moiseev, Russia’s Deputy Finance Minister, recently commented during an economic forum that certain situations may call for the use of crypto. A draft law is currently under consideration by the State Duma which could provide a legal basis for trials.

Special Committee To Issue Permits for Crypto Use

The special committee will comprise representatives from various ministries and organizations such as the Bank of Russia and law enforcement agencies. This committee would issue permits to operators who wish to use cryptocurrency in foreign trade transactions.

Sanctions Pressure Prompts Consideration Of Crypto Use

Western sanctions against Russia have increased since its invasion of Ukraine, resulting in officials considering using cryptocurrency as a means of settling cross-border payments. Most state institutions are not in favour of legalizing decentralized cryptocurrencies like bitcoin within Russia, except when it comes to facilitating international payments.

Delay In Adoption Of Legal Basis For Trials Expected

Due to differences between the liberal views held by the Ministry of Finance and the more conservative stance taken by the Central Bank of Russia on crypto regulations, progress has been impeded. The legislative process necessary to provide a legal basis for these trials is expected to be delayed until at least the end of 2019.

< p > Cryptocurrency may have gotten a bad name among investors but there are certain scenarios where it can be used effectively including foreign trade transactions . While there are differences between government bodies on how best to regulate this , strides are being made towards setting up a system which would allow operators to use crypto assets internationally .