JAKARTA - Russia has passed a law allowing the use of digital rubles and other digital assets in cross-border trade. This step is expected to reduce Russia's dependence on the global financial system controlled by Western countries.
On February 27, members of the State Duma, the lower house of Russia's parliament, approved the law in second and third readings. The law was previously approved by the State Duma Committee on Financial Markets, on February 21.
The law regulates “digital financial assets” (DFA), which include the digital ruble, Central Bank Digital Currency (CBDC), and other digital assets backed by commodities or securities. The law also regulates “digital assets” (UDR), which include digital tokens that are not linked to real assets, such as non-fungible tokens (NFTs).
According to the law, Russian companies and their partners can use DFA and UDR in international settlements, provided they comply with applicable crypto asset and exchange regulations. The law also gives Russia's Central Bank the authority to supervise and regulate the digital asset market.
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Chairman of the State Duma Committee on Financial Markets, Anatoly Aksakov, said that the law aims to increase Russia's foreign trade activities using digital assets. He also said that the law could help Russia overcome sanctions imposed by Western countries.
“The use of digital assets in foreign trade operations will help Russian importers and exporters to work more actively with friendly countries. "To some extent, we will be able to resolve the issue of sanctions imposed on Russia," Aksakov said, as quoted by RBC.
Aksakov added that the law becomes urgent because there are currently no regulations governing the use of digital assets for international payments. He also emphasized that the law does not apply to crypto assets, such as Bitcoin, which are considered illegal as a means of payment in Russia.
Russia is not the first country to use CBDC for international transactions. At the beginning of this month, China and the United Arab Emirates carried out transactions worth 13.6 million US dollars (IDR 212.8 billion) using digital yuan and digital dirhams, as reported by CryptoNews.
Russia's digital assets law will now be sent to the Federation Council, the upper house of Russia's parliament, for approval. If approved, the law would be signed by President Vladimir Putin and come into effect in January 2023.
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