Against Western Sanctions, Russia Is Thinking Of Making Crypto Money As A Payment Instrument

Photo by Jievani Weerasinghe on Unsplash

JAKARTA - Russia is considering allowing cryptocurrencies to be used for international payments, the Interfax news agency quoted a government official as saying on Friday 27 May.

"The idea of using digital currencies in transactions for international settlements is being actively discussed," said Ivan Chebeskov, head of the finance ministry's financial policy department.

Russian officials are grappling with how to regulate the country's crypto market and use of digital currencies, with the finance ministry challenging the central bank's calls for a complete ban.

Discussions have been going on for months and although the government expects cryptocurrencies to be legalized as a means of payment sooner or later, no consensus has yet been reached.

The finance ministry is discussing adding a recent proposal on international payments to the latest version of the draft law, the Vedomosti newspaper reported citing government officials.

Allowing crypto as a means of settlement for international trade would help counter the impact of Western sanctions, which have seen Russia's access to traditional cross-border payment mechanisms "limited," Chebeskov said.