• Russia has announced the launch of an unrestricted crypto cross-border payment system.
• The finance minister said digital currencies could be used for international payments without interference.
• The Bank of Russia is planning to test the use of cryptocurrencies for international payments within a regulatory sandbox framework.
Russia Launches Unrestricted Crypto Cross-Border Payment System
On Monday, Russian Finance Minister Anton Siluanov announced that the country is to implement a new cross-border payment system “bound by no restrictions” where digital currencies can settle cross-border transactions. This system will allow two parties to come to an agreement and make settlement payments without any other country being able to intervene or freeze such payments.
Economic Sanctions Lead To Crypto Market Consideration
Following Russia’s invasion of Ukraine in early 2022, Western nations imposed harsh economic sanctions on the Federation. In response, the State Duma – the lower house of parliament – said it would consider a bill that would legalise a crypto market within the country. President Vladimir Putin criticised these sanctions as “illegitimate restrictions” and expressed his need for a global payment system powered by blockchain technology that would be beyond interference from any other country or financial groups.
Bank Of Russia Testing International Crypto Payments
In light of President Putin’s comments regarding blockchain technology, First Deputy Chairperson of the Central Bank Olga Skorobogatova said that they are planning to pilot a project with interested market players and test using cryptocurrency for international payments within a regulatory sandbox framework.
Digital Ruble & Digital Yuan To Be Used For Cross-Border Payments
Minister Siluanov has emphasised this new payment system will be based on modern technologies such as digital financial assets and digital currencies which could include the Digital Ruble, Digital Yuan and other similar currencies in order to facilitate cross-border payments between two parties.
It appears Russia is looking towards blockchain technology as an avenue away from heavy economic sanctions and towards more efficient global payment systems in order to facilitate secure cross-border transactions between two parties without interference from any external forces.