As the prominence of BRICS nations grows, Russia is reportedly developing specialized institutions to mine and transfer cryptocurrencies across borders. The country has expressed its intention to create a “special organization” that will use digital assets for interna...
As the prominence of BRICS nations grows, Russia is reportedly developing specialized institutions to mine and transfer cryptocurrencies across borders. The country has expressed its intention to create a “special organization” that will use digital assets for international business transactions. Cryptopolitan reported that the Central Bank of Russia is currently working on a draft law to enable the use of cryptocurrencies for international trade. This development follows Russia’s increasing economic separation from the West due to the invasion of Ukraine.
Russia paves the way for international crypto mining and transactions
While Russian authorities have been clear on their domestic stance on cryptocurrencies, using these assets internationally is becoming more viable. The country is now focused on creating mechanisms to facilitate the use of cryptocurrencies in international trade.
Reports indicate that Russia is forming specialized institutions for mining and transferring cryptocurrencies internationally. Elvira Nabiullina, the head of the Bank of Russia, confirmed this development during a speech to the Federal Assembly of Russia.
Nabiullina stated, “We adhere to the same position that, within the country, cryptocurrency (…) should not be used,” according to Finbold. She added, “As for the foreign payments, we assume that this is possible in the form of an experiment,” highlighting the forthcoming legislation.
The emerging institution will handle mining cryptocurrencies and payment arrangements with foreign entities. Alexei Guznov, the central bank’s deputy chairman, discussed the development of these institutions and potential participants.
Guznov explained, “An analysis will be carried out of what kind of organization this can be. For now, there is just a discussion with the government to understand their sphere of activity, which banks they serve, and how much they can interact with representatives.”