August 9, 2022

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Russian Finance Ministry invites Crypto for international settlements

Russian Finance Ministry Calls On Crypto for International Settlements

The Russian Ministry of Finance He introduced a new draft of a bill calling for the use of encryption for international settlement payments.

The bill was, “On Digital Currencies” Submitted in Februarywhich would address previous drafts that sought to ban crypto as a form of payment, rather than exploring its merits as an investment tool.

The new bill takes into account proposals made by the Ministry of Economic Development, the Ministry of Internal Affairs, the Ministry of Digital Development, the Federal Tax Service and the Analytical Center’s National Projects Center. The Finance Ministry will discuss the new bill with the United Russia party.

Limited scope for foreign trade

The central bank representative noted that while he theoretically possible For the use of cryptocurrencies in foreign trade, these applications are limited in their scope. He said cryptocurrencies “serve far less payments than traditional payment systems,” and that international regulators can detect and stop large transactions.

In February, the central bank Suggest a ban On Cryptocurrencies, Cover Cryptocurrency miningand trading and possession of cryptocurrencies, and impose a fine of one billion rubles on anyone who violates these laws.

Since the Russian invasion of Ukraine, Binance she has prevented Deposit and trade cryptocurrencies for Russians with assets over $10,000 (€10,000). Russia is currently carrying 630 billion dollars in reservesHalf of these reserves are held abroad in foreign commercial and central banks.

The Bank of Russia bill would ban banks from engaging in crypto services and owning cryptocurrencies.

Another attempt to evade sanctions?

Maxim BashkatovThe proposal to use cryptocurrencies as a settlement for foreign transactions has been under consideration for some time, said the head of legal development guidance at the Center for Strategic Research.

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Bashkatov stressed that using cryptocurrency in this way should not be misinterpreted as Russia’s avoidance of sanctions, but rather as an alternative to the international banking protocol SWIFT and Payment processors MasterCard and Visa, they have all withdrawn from Russia.

He said that this cryptocurrency implementation is in line with one of the original principles of cryptocurrency, which is to remove middlemen from transactions.

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