EddieJayonCrypto
27 Aug 24
Russia is planning trials involving crypto exchanges and digital tokens for cross-border transactions to evade international sanctions, starting on September 1. The initiative, supported by President Vladimir Putin, aims to ease payment challenges faced by Russian businesses. The National Payment Ca...
Russia is set to initiate trials for crypto exchanges and digital tokens for cross-border transactions in an effort to mitigate international sanctions. The initiative, supported by President Vladimir Putin, aims to ease payment challenges faced by Russian businesses. The National Payment Card System will facilitate the exchange between rubles and crypto assets during the trial. If successful, Moscow and St. Petersburg may establish crypto platforms in the future.
Sources familiar with the matter revealed that Russia intends to leverage its National Payment Card System to facilitate the seamless exchange between rubles and crypto assets during the trial phase. Legislative groundwork for the initiative was laid in July, endorsed by President Putin in August. This move comes as Russian businesses grapple with mounting obstacles in settling payments with overseas suppliers and receiving remittances, particularly after a US decision in June broadened the criteria for imposing sanctions on foreign financial institutions engaged with Russia.
Russia's previously proposed outright ban on cryptocurrencies has given way to a changing regulatory landscape, with authorities actively exploring avenues to legalize crypto exchanges. The selection of the National Payment Card System for these trials is significant due to its pre-existing infrastructure and regulatory oversight by the central bank. If successful, the Moscow Exchange and the St. Petersburg Currency Exchange may establish crypto platforms in the upcoming year.
The total crypto market cap valuation is currently at $2.1 trillion.