Days after the two institutions agreed on the need for cross-border crypto payments, the Ministry of Finance and the Russian Central Bank are again emphasizing different priorities. The Treasury aims to legalize cryptocurrency payments in the coming months, while the monetary authorities say they will “actively promote” digital currencies for international payments.
Bank of Russia seeks to introduce digital ruble for international payments
The Central Bank of Russia (CBR) will “actively promote” the adoption of the digital ruble for cross-border payments, Governor Elvira Nabiullina said in a documentary aired on TV station Russia-24. The film was dedicated to the 220th anniversary of the Ministry of Finance of the Russian Federation.
The ministry recently announced that it had reached an agreement with monetary authorities on the need to legalize international crypto payments in the face of Western sanctions. According to the ministry, the two regulators have concluded that under current circumstances “it is impossible to do without cross-border payments in cryptocurrencies.”
These payments should be legalized immediately, Deputy Finance Minister Alexei Moiseyev told Russian media. Anatoly Aksakov, head of the Financial Markets Committee of the State Duma, the lower house of the Russian parliament, also joined calls to allow crypto payments in foreign trade.
Against the backdrop of these officials’ statements on the importance of using cryptocurrencies as a means of payment that can reduce sanctions pressure on Russian importers and exporters, the CBR has indicated its intention to prioritize the use of state-issued digital currencies.
In her interview cited by Bits.media and RBC Crypto, Nabiullina argued that digital financial assets (DFA), those with issuers according to current Russian law, “are a desirable alternative to private cryptocurrencies.” Russia is also seeking to settle stablecoin settlements with friendly countries.
CBR to Begin Domestic Introduction of Digital Ruble in 2023
The governor said that a number of Russian banks and other financial institutions are interested in participating in a pilot Bank of Russia Digital Currency (CBDC) project to be completed by next year. He noted that many Russian banks and other financial institutions are interested in and already participating in the pilot project of the Central Bank of Russia Digital Currency (CBDCHe also remarked that the digital ruble platform will be linked to digital currencies of other countries.The CBR Chairman stated.
We will actively promote the possibility of cross-border payments using the digital ruble.
Naviulina added that subject to the success of the pilot version, the Bank of Russia will begin gradually introducing digital rubles into domestic circulation in 2023 and will conduct certain types of operations with government-guaranteed coins.
At the same time, the Ministry of Finance plans to start the regulatory process for cross-border crypto payments during the fall session of the State Duma, Moiseev said at the Eastern Economic Forum held in Vladivostok this week. The official stressed the need to legally regulate the exchange of cryptocurrencies and fiat currencies, although these payments are not currently prohibited.
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