Russia is preparing to launch trials for cryptocurrency exchanges and digital tokens for cross-border transactions to counter international sanctions.
The trials are set to begin on September 1, Bloomberg reported, citing sources familiar with the matter.
Per the report, Russia plans to utilize the National Payment Card System (NPCS) for converting rubles into cryptocurrencies during these trials.
The NPCS, established by the central bank in 2014, currently operates the Mir payment cards and Russian instant interbank payment systems.
Its existing infrastructure and regulatory framework make it a suitable choice for these experimental crypto transactions.
Russia Looking to Regulate Crypto Exchanges
The Russian government has been exploring ways to legalize and regulate crypto exchanges, particularly as businesses struggle with payment processing amid tightening sanctions.
These challenges intensified after the United States expanded the criteria for sanctioning foreign banks working with Russia in June, making it increasingly difficult for Russian companies to pay overseas suppliers and receive payments for exports.
Last month, Russia’s parliament passed legislation that legalized cryptocurrency mining and established a framework for testing digital tokens for cross-border payments under the supervision of the central bank.
President Vladimir Putin signed these bills into law on August 8, paving the way for the upcoming trials.
Finance Minister Anton Siluanov, speaking at a forum on August 14, acknowledged the ongoing efforts to find a solution for legalizing crypto exchanges but noted that a final decision had not yet been reached.
If the trials prove successful, Russia may permit the Moscow Exchange and the St. Petersburg Currency Exchange to establish crypto platforms as early as next year.
The tests will involve existing cryptocurrencies, allowing for a broad evaluation of the system’s effectiveness in facilitating cross-border transactions.
Russian Commodities Firms Turn to Stablecoins for Transactions
As reported, Russian commodities firms facing challenges in executing financial transactions with Chinese counterparts have turned to stablecoins.
In response to international restrictions and tightening compliance measures, these firms have turned to cryptocurrencies, including Tether’s stablecoin, to facilitate cross-border transactions with their Chinese clients and suppliers.
Furthermore, Russia has also been pushing forward with CBDC plans.
In July last year, Russian President Vladimir Putin officially signed a bill that would introduce a digital version of the country’s national currency.
The move gave legal authority to the Bank of Russia, the country’s central bank, to act as the platform operator for the digital ruble.
The digital ruble will act as a new form of payment, alongside cash and non-cash rubles.
More recently, it was revealed that Iran and Russia are working on CBDC and “digital financial asset” (DFA)-powered trade solutions.
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