The sanctions that weigh on Russia push companies to seek other alternatives for trade. As the country tries to best value the Russian ruble, traders are betting on cryptocurrencies for cross-border transactions. But what about regulation?
Cross-Border Crypto Payments Explode in Russia as USD and Euro Lose Power
Since the start of the Russian invasion of Ukraine, the country of Vladimir Putin has faced numerous sanctions. Despite some compromises, the sanctions persist and companies are turning to crypto assets. Ivan Chebeskov, the director of the Financial Policy Department at the Ministry of Finance, spoke about this.
Indeed, in a conversation with the Russian daily Izvestia, the latter acknowledged the growing trend in the use of cryptocurrencies. Thus, according to the statements of Vladimir Gamza, head of industrial, financial and investment policy at the Council of the Chamber of Commerce and Industry of the Russian Federation, Russian entities are increasingly opting for payment instruments digital, including cryptos.
He also states that due to financial restrictions, settlements in fiat currency are kept to a minimum. The blocking of SWIFT in Russian banks is one of the triggers of this phenomenon. However, it should be remembered that the new regulations for crypto payments are not yet in force. According to a government official, these should come into force in 2023 at the earliest.
When digital assets take over…
Since the beginning of the year, Russian authorities have been thinking about how to regulate the crypto ecosystem. Indeed, the sanctions against Russia convinced them that cross-border crypto payments should at least be legalized. Earlier in September, Anatoly Aksakov, the head of the parliamentary committee on financial markets, said that institutions could choose which token they want to use.
All these measures come as the use of cryptocurrencies takes on an unprecedented scale. Indeed, they are used for export component payments for Russian manufacturing and exports.
Cryptos are increasingly used in Russia to pay for the import of consumer goods. Vladimir Gamza even predicts that the volume of cross-border transactions could quickly multiply. In a context of sanctions, it is necessary, even essential, to try all alternatives to payments SWIFT.
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