Russia Readies Draft Law that Allows Crypto as Payment for International Trade

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The government of Russia which has continually made several moves towards crypto advancement has announced the preparation of a draft law to adopt digital assets as an official payment method for imports and exports in order to ensure sustainable international trade.

Russia Utilizes Crypto for External Payments

According to a report drawn from an event with representatives from the New People Party, Elvira Nabiullina, the Central Bank Governor of Russia mentioned that the regulator can now make use of cryptocurrencies for settlements with foreign organizations. Although the central bank opposes the use of cryptocurrency within the state, the central bank chairman noted that such funds (cryptocurrencies) can be used for external payments.

Interestingly, unique organizations will be created to be in charge of the mining and transfer of cryptocurrencies to foreign institutions, and engaging in operations with other digital finances.

However, the central bank is in talks with the government to know which organizations will be best to handle these transactions. For start, the initial tasks will be entrusted to firms in the state, but as times go on, private institutions will be incorporated.

Russia Integrates Crypto Amid EU Sanctions

Recall that the European Union (EU) has issued about eight waves of sanctions against Russia. This is in addition to all the previously enforced sanctions and the devastating ones imposed by the United States.

Despite the prevalent global financial sanctions, the Central Bank of Russia is still bent on integrating cryptocurrencies and blockchain technology into its local financial economy. As such, the bank is exploring strategies focused on how this integration can be achieved.

Nations Explore the Use of Cryptocurrency

Russia is not the only country that has resolved to use digital currencies for international settlements. Several other countries are looking for ways to reduce their dependence on the US dollar for trading, while some who recognize crypto are working tremendously towards creating regulations that will govern the use of Bitcoin (BTC) and other cryptocurrencies.

Recall that the Central African Republic (CAR) has become a hot topic of discussion among crypto lovers after its massive BTC adoption as a legal tender. Likewise, Bitfinex was granted a license by El Salvador’s National Digital Asset Commission to provide digital asset services.

Just like many other nations, Russia has been researching how to roll out a Central Bank Digital Currency (CBDC) dubbed the “Digital Ruble” for easy and convenient transactions. Although the central bank noted that it will commence the pilot testing of the digital currency by the 1st of April, it was further postponed till the beginning of May since relevant legislation has only gone through the first session in the state Duma.

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