Moscow, Russia - In a move to circumvent Western restrictions, the Russian government has announced plans to launch regulated trials of cryptocurrency exchanges for cross-border payments.
Moscow, Russia - In a move to circumvent Western restrictions, the Russian government has announced plans to launch regulated trials of cryptocurrency exchanges for cross-border payments starting on September 1, 2024.
According to sources familiar with the plan, Russia will utilize its National Payment Card System (NPCS) to facilitate the exchange of rubles into cryptocurrencies for international transactions. The NPCS, which currently handles ruble-denominated interbank settlements, will be adapted to support these crypto-based payment trials under the supervision of the Central Bank of Russia.
The decision comes as Russian businesses struggle to maintain overseas operations due to the extensive financial sanctions imposed by the United States and its allies following the 2022 invasion of Ukraine. “We haven’t found a solution yet on how to do this," admitted Russian Finance Minister Anton Siluanov.
Russia's central bank had previously pushed for a complete ban on cryptocurrency activities, citing concerns over financial stability and illicit activities. However, the narrative has now shifted, with the government viewing digital assets as a potential tool to mitigate the impact of sanctions.
"The urgency behind this decision is clear," said an expert who requested anonymity. "Russian companies are finding it increasingly difficult to pay overseas suppliers and receive payments for exports, especially since the U.S. expanded its criteria in June for targeting foreign banks that work with Russia."
The upcoming trials are part of a broader effort by the BRICS nations (Brazil, Russia, India, China, and South Africa) to reduce their reliance on the U.S. dollar in international trade, a process known as "de-dollarization." The BRICS alliance has been actively exploring alternative payment systems, including the potential use of cryptocurrencies, to insulate their economies from American financial influence.
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