Russia is one of the countries to have banned the use of cryptos on its territory. The Kremlin has also multiplied anti-crypto projects, the last of which dates back to July. However, the country of Vladimir Putin has been engaged in a rebound war against Ukraine since February. Thus putting themselves at odds with practically all the Western powers which are cornering it with economic sanctions. Forced to react, the Kremlin has understood that its salvation will certainly go through the adoption of digital currencies. He opted for a dual policy on crypto, with flexibility internationally and persistent restriction internally.
The Kremlin softens its international policy on cryptos
Russia is going through a rather delicate period in its armed conflict with Ukraine. Westerners continue to multiply economic sanctions to stifle the Kremlin. The country is thus unable to receive payments from abroad. Worse still, it is impossible for Russians to pay for goods on foreign sites. These are all things that have forced the Moscow government to review its restrictive policy vis-à-vis virtual currencies.
Russia therefore wants to accelerate the liberalization of cryptocurrencies within the framework of the international exchanges through Standard “On digital currency“. In other words, it wants to reduce the dependence of cross-border exchanges on the dollar, by allowing companies to choose the digital currencies of their choice for international payments. It is the Ministry of Finance with the approval of the government which introduced this project at the beginning of the year.
We will have to wait a little longer before it becomes official. But Ivan Chebeskovan executive at the Ministry of Finance, confirmed that the draft did indeed contain a provision relating to cross-border transactions in cryptocurrencies. Still according to him, cryptocurrency is a property that can easily be used in international trade in the form of barter. He concluded by leaving the door open to the possible adoption of a law dedicated to cryptocurrency payments.
Russia Stands Firm on Internal Crypto Ban
We must remain lucid in the face of this Russian desire to adopt cryptocurrencies in cross-border exchanges. If the country seems forced to do so to guarantee its interests on the international level, internally, it is the status quo. We remember that almost two months ago, Vladimir Poutinethe President of Russia, signed a anti-cryptocurrency law. It came to prohibit payments in digital currency throughout the territory.
This law has also created a misunderstanding between the Ministry of Finance and the Central Bank of Russia. If the first entity is open to internal adoption with regulation, the second is not of the same opinion. She wants a total ban, so that the ruble remains the only legal means of payment.
Ultimately, the Ministries of Economy, Finance and the Russian Central Bank are working together to register cryptocurrencies in cross-border trade. This is the best way for the Kremlin to circumvent any financial sanctions imposed by Western countries. The three entities recognize that the use of cryptocurrencies is essential for Russia. But, if the legalization of cryptocurrencies is supported in the context of cross-border exchanges, it’s different internally. Indeed, the monetary authority is against its approval as a means of payment in Russia.
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