Russia Reportedly Considering Accepting Bitcoin or Other Cryptocurrencies as Payment for International Trade |  Russia, Ukraine

Russia Reportedly Considering Accepting Bitcoin or Other Cryptocurrencies as Payment for International Trade | Russia, Ukraine

Faced with tougher sanctions related to its invasion of Ukraine, Russia is reportedly considering the idea of ​​accepting bitcoin or other cryptocurrencies as payment for its international trade. The Interfax news agency first reported the news on Friday, citing a senior Russian government official.

The idea of ​​using digital currencies in transactions for international settlements is actively discussed“, said Ivan Chebeskov, head of the financial policy department of the Ministry of Finance.

Chebeskov’s remarks suggest that the Russian government and central bank, which have pushed for a blanket ban on cryptocurrencies, may be getting closer to resolving their differences.

Russia has already floated the idea of ​​allowing the use of cryptocurrencies for the payment of oil and gas that it sells to “friendly countries“. At the time, the head of the energy committee, Pavel Zavalny, said that China and Turkey could start paying for their energy in Russian rubles, Chinese yuan, Turkish liras – or even bitcoins.

According to a report by Russian news agency TASS, Minister of Industry and Trade Denis Manturov said: “The question is when it will happen, how it will happen and how it will be regulated. Today, the central bank and the government are actively engaged in this area.

Until today, crypto in Russia existed in a legal gray area. Russians were allowed to buy and trade cryptocurrencies, but trading companies and exchanges were often closely monitored by the financial administration. According to industry estimates, the annual volume of crypto transactions in the country is around $5 billion.

Days before Russia invaded Ukraine, the central bank said it wanted to ban the use and mining of cryptocurrencies, arguing they could be used to threaten its monetary policy sovereignty and stability. country’s finance. To further explain its unfavorable stance against cryptocurrencies, the regulator argued that they could be used to fund terrorism and lead to money laundering.

The Russian central bank believes that cryptocurrencies have the characteristics of a Ponzi scheme, warning of possible bubbles in the market. Russia’s central bank has also expressed concern about financial stability risks due to the high volatility of cryptocurrency transactions.

Available information shows that many Russian entities and individuals were looking to liquidate their assets to acquire properties in crypto-friendly regions, such as the UAE, through cryptocurrencies.

Putin said earlier this year that cryptocurrencies have a “potential future” as a means of payment. The Russian leader pointed out that cryptocurrency is finding more use cases in the real world. However, Putin was less sure about the fundamentals that were driving the valuations of cryptocurrencies like bitcoin.

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