Bank Of Russia To Allow Remittance Payments With Crypto
- According to a local media report, the Central Bank of Russia is in talks to possibly legalize crypto for cross-border payments amid the heavy sanctions imposed by the US and others.
- The central bank and the country’s Ministry of Finance have agreed that “it is impossible to do without cross-border settlements in cryptocurrency” amid the ongoing geopolitical conditions.
The Bank of Russia, which has always displayed a negative attitude towards the crypto sector, finally seems to be shifting its attitude. According to a local news agency TASS, the country’s central bank is in talks to possibly legalize crypto for cross-border payments amid the heavy sanctions imposed by other nations including US.
The report reveals that the Bank of Russia and the country’s Ministry of Finance have agreed that “it is impossible to do without cross-border settlements in cryptocurrency” amid the ongoing geopolitical conditions.
Alexei Moiseev, Deputy Finance Minister, stated that cryptocurrency payments would likely be permitted for the same very soon. However, the cooperation focused on users depending on platforms located in other countries to open cryptocurrency wallets.
Instead, the official emphasized the importance of facilitating domestic crypto services in Russia, which will be supervised by the central bank and would be required to comply with the anti-money laundering (AML) and know-your-customer (KYC) regulations.
“Because the infrastructure that we plan to create is too rigid for the use of cryptocurrencies in cross-border settlements, which, of course, we must, first of all, legalize somehow. On the one hand, give people the opportunity to do it; on the other hand, put it under control so that there is no laundering, paying for drugs, and so on,”He stated.
There has never been a pleasant relationship between Russia and the cryptocurrency sector. Despite various senior authorities giving mixed signals about the asset class, President Vladimir Putin recently drafted a new law that intended to ban the usage of digital assets as payment for goods and services in the nation.
However, according to Ksenia Yudaeva, the first Deputy Governor of the nation, the central bank is open to authorizing the use of cryptocurrencies for cross-border payments. Moreover, the Prime Minister of the country, Mikhail Vladimirovich Mishustin, recently announced that Russia is likely to adopt crypto as an official payment mode for imports and exports in order to secure sustainable global trade.
This shift comes amid the ongoing Russia-Ukraine war, which has increased the popularity of Bitcoin and cryptocurrencies, in general, on both sides.
Significant cryptocurrency donations from around the world have been made to Ukraine, and these funds are being used to purchase supplies for the war. Additionally, a law that legalizes virtual currencies was passed by the Ukrainian parliament in February, displaying the forward-thinking of legislators in the nation.
Although the Bill does not mean that Bitcoin (BTC) or any other digital currency would be accepted as legal tender in Ukraine, citizens find it easier to use the asset.