Russia is taking further steps to ease global sanctions imposed since its invasion of Ukraine in 2022. The country’s central bank plans to set up new institutions to mine crypto assets and settle international payments, according to local media reports.
During a meeting in the State Duma, a chamber of the Russian parliament, the governor of the central bank, Elvira Nabiullina, announced that the Bank of Russia will allow the use of cryptocurrencies in external settlements in a pilot program. However, the move does not signal a change in the country’s cryptocurrency landscape:
“We maintain the same position that cryptocurrencies should not be used in the country and for external settlements we assume that this can be achieved experimentally. The bill is also being prepared in the form of an experimental legal regime,” said Nabiullina, According to the translated summary of the report. Nabiullina, a former economic adviser to Russian President Vladimir Putin, said the plan included the creation of “specially authorized organizations” for cryptocurrency mining and international settlements including those dealing with cryptocurrencies and Trading of other digital assets.
Bank of Russia deputy chairman Alexei Guznov told reporters the bank was in talks with the government on how the companies should operate. "Currently, discussions are ongoing with the government in order to clarify the scope of their activities," Guznov said, adding that private companies may contribute to the initiatives in the future. Gabby Kusz, CEO of the Global Digital Assets and Cryptocurrency Association, said in a statement to Cointelegraph that Russia, China and others are realizing that “cryptocurrency is not a new financial product, but an evolution of how individuals and organizations Or fundamentally change" the exchange value. " She also emphasized that this movement could affect the global financial system, including the relevance of the United States to the future of finance in the digital age:
"Overly aggressive moves to promote crypto innovation, blockchain technology, and offshore entrepreneurship will only diminish U.S. leadership on geopolitical and monetary policy."
The development follows recent news that the BRICS countries - Brazil, Russia, India, China and South Africa - are working to create their own currencies to facilitate trade. Mark Lurie, CEO of DeFi software company Shipyard, told Cointelegraph in an interview that commodity-backed currencies used for settlements such as those planned by the BRICS nations have no intention of replacing the dollar’s dominance.
“While investors are increasingly distrusting the Fed, neither investors nor the BRICS themselves necessarily believe that the Russia-led governing body of the currency will not debase itself. Ultimately, the most important thing is not Trust, but relative trust," Lurie said.
