Russia is gearing up to commence trials of cryptocurrency exchanges and cross-border payments using digital tokens starting September 1st. This move aims to alleviate payment challenges faced by Russian companies due to international sanctions.
The trials will utilize the National Payment Card System for facilitating the exchange between rubles and cryptocurrencies. This initiative follows recent legislation passed in July, legalizing crypto mining and establishing a framework for testing digital tokens in cross-border settlements under the central bank’s supervision.
These trials come at a time when Russian businesses are grappling with increasing difficulties in conducting international transactions. The challenges stem from US sanctions that have tightened the parameters for foreign banks engaging with Russia.
The shift towards crypto represents a significant change in stance for Russia. As recently as January 2022, the central bank had proposed a complete ban on the use and creation of cryptocurrencies. However, Finance Minister Anton Siluanov recently indicated that authorities were actively seeking ways to legalize crypto exchanges.
The National Payment Card System, established by the central bank in 2014, has been chosen for these trials due to its existing infrastructure for interbank settlement and clearing. Additionally, it operates under full regulation by the central bank.
Should the trials prove successful, there’s a possibility that the Moscow Exchange and the St. Petersburg Currency Exchange could be permitted to establish crypto platforms as early as next year. The trials are open to the use of any existing cryptocurrency.
