Russia’s Deputy Finance Minister, Alexey Moiseev, addressed the potential of cryptocurrencies in certain foreign trade scenarios during the “Banks. Transformation. Economy. 2.0” conference in Moscow.
Moiseev acknowledged the risks associated with cryptocurrencies but suggested that they could be useful in situations restricted by Western sanctions. The State Duma, Russia’s lower parliament, is reviewing a draft law to regulate this issue.
Crypto transactions experiments underway
If the bill is passed, Moiseev revealed that experiments would be conducted with a committee consisting of representatives from various ministries, the Bank of Russia, and law enforcement agencies.
This committee would grant permission for specific operators to utilize cryptocurrencies in foreign trade transactions. Moiseev estimates that the legislative process needed for the trials might not begin until the end of the year.
Cryptocurrency necessity amid sanctions
As Western sanctions on Russia have intensified following the invasion of Ukraine, state institutions have realized the need to utilize cryptocurrency for cross-border settlements. While most decentralized cryptocurrencies are not yet legalized for domestic transactions in Russia, they are allowed for international payments under special legal regimes yet to be established. This change in attitude underlines the growing significance of cryptocurrency in light of geopolitical tensions.