Russian Chamber of Commerce Suggests Using Cryptocurrencies in Settlements With Africa – Bitcoin News

The use of cryptocurrencies in cross-border payments is one of the proposals put forward by the Russian Chamber of Commerce, which is lobbying for increased cooperation with African countries. Against the backdrop of unprecedented sanctions limiting Russia’s ability to trade internationally, the head of the board urged the government to develop an alternative system of payments with Moscow’s partners.

The Chamber of Commerce proposes improving Russia’s trade with African countries

President of the Russian Chamber of Commerce and Industry Sergei Katyrin, in a letter sent to Russian Prime Minister Mikhail Mishustin, outlined a number of proposals for developing economic relations with African countries. Among other ideas, the head of Russia’s Trade Council advocates alternative payment options. Quoted by TASS, Katyrin insists:

It seems advisable to instruct the Ministry of Finance together with the Central Bank to ensure the conclusion of intergovernmental agreements with African states on the use of national currencies and cryptocurrencies in mutual settlements and payments.

The official calls on the federal government to create a new export-import bank and trust fund to support the export activities of small and medium-sized firms in Africa. He also wants the Department of Industry and Commerce and the Department of Economic Development to establish trade missions and free trade zones in African countries with the greatest potential for increased connectivity.

Katyrin urges the two agencies to develop a new settlement mechanism for foreign and domestic payments, including cryptocurrencies. The system could be implemented in settlements for natural resource concessions, investment projects, export transactions, and other payments. He also proposes the creation of a Russia-Africa Trade House.

The head of the Chamber stresses that the development of this kind of cooperation with “friendly regions” is of paramount importance to the Russian Federation. His proposals come at a time when increasing Western sanctions imposed due to the war in Ukraine continue to limit Moscow’s access to global finance and its foreign currency reserves in foreign banks.

The restrictions convince Russian officials that crypto-assets can help the country return to global markets and replace the U.S. dollar and euro with other national and digital currencies. While the Bank of Russia is skeptical about using cryptocurrencies to circumvent sanctions, the Ministry of Finance is leading efforts to legalize them and says sanctions motivate Russia to build its own cryptocurrency market infrastructure.

Image Credits: Shutterstock, Pixabay, Wiki Commons