Russia faces economic sanctions from the US and other Western countries following the invasion of Ukraine and is looking to use cryptocurrencies to evade sanctions.
Introduction
Russia, which recently approved the use of Bitcoin and cryptocurrencies in international transactions, is developing its financial infrastructure to use crypto.
Legislative Changes
According to a Chainalysis report cited by The Block, Russia is developing its financial infrastructure to use cryptocurrencies in international trade to bypass Western sanctions. The legislation legalizing crypto mining and allowing cryptocurrencies to be used for international payments was signed into law by President Vladimir Putin on August 8, and crypto payment trials are scheduled to begin in September.
Implementation and Prospects
The Russian central bank is leading an initiative to integrate cryptocurrency into Russia’s financial system for cross-border payments, creating an experimental infrastructure that will allow approved Russian businesses and organizations to use digital currencies for international trade. Chainalysis noted that Russia-based cryptocurrency exchanges, such as Tetchange, 100btc, Bitzlato, Suex, and Garantex, could be used to process cross-border payments.
These efforts by Russia in the field of cryptocurrency payments aim to ease the pressure of Western sanctions and reduce reliance on the US dollar, which is especially important amid rising geopolitical tensions.
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