Moscow to test crypto for international payments

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Russia is set to begin testing cryptocurrency exchanges on September 1 as a strategy to mitigate the impact of international sanctions, Bloomberg reported Monday, citing sources with knowledge of the matter.

Future trials will focus on facilitating the conversion between rubles and cryptocurrencies using the National Payment Card System. The system, fully regulated by the Bank of Russia, includes features such as interbank settlement and clearing, making it a viable platform for these attempts.

The tests aim to give Russia an alternative for cross-border transactions, especially in light of difficulties with traditional payment systems. Russian exporters have faced challenges in buying foreign goods and receiving payments due to ongoing Western sanctions.

Success in these attempts could provide a powerful alternative to traditional financial systems. Additionally, it can lead to wider crypto adoption for cross-border transactions.

Digital assets have made progress with Russian authorities despite some restrictions on their use. Developments are driven by the need to find alternative payment methods amid international sanctions.

There are ongoing discussions in Russia about how to regulate cryptocurrency exchanges and integrate cryptocurrency into the economy, rather than implementing an outright ban.

On August 8, President Vladimir Putin approved the creation of a legal framework for cross-border crypto transactions and signed a law allowing crypto mining in the country.

A recent report by a local media outlet revealed that Moscow is considering establishing at least two domestic cryptocurrency exchanges to support global trade. The country is eyeing Moscow and St. Petersburg for its plan.

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