Russia's Central Bank and Ministry of Finance Agree on Cryptocurrencies for International Payments

The Russian government approved the use of crypto as international payments. (Photo; Doc. Crypto Chronicle)

JAKARTA – After being subjected to economic sanctions by Western countries, Russia has reportedly issued a decision regarding cross-border payments with cryptocurrencies. The information was delivered by local media Kommersant, Wednesday 21 September.

This step was taken so that Russian citizens can access digital wallets to store crypto or crypto wallets. The bill regarding crypto regulations for payments has been approved in its entirety by the Central Bank of Russia, according to Alexei Moiseev, Deputy Minister of Finance of Russia.

“It generally explains how to acquire cryptocurrency, what can be done with it, and how it can or cannot be settled with cryptocurrencies in the first place in cross-border settlements,” he explained at the 14th International Banking Forum. Russia - 21st century", quoted from CryptoPotato.

In addition, the central bank is also considering the possibility of crypto being used as cross-border payments in the near future. According to the Minister of Finance, both the central bank and the Ministry of Finance have agreed to determine this step.

“Now people are opening crypto wallets outside the Russian Federation,” said Moiseev. “This needs to be implemented in Russia, that this is done by entities overseen by the Central Bank, which are required to comply with the requirements of the anti-money laundering law.”

The central bank's stance is in stark contrast to some of the bank's past positions, which have attempted to ban crypto assets entirely. However, the central bank's stance was opposed by the Ministry of Finance, who suggested that cryptocurrencies should be regulated instead.

The State Duma also rejected the all-encompassing prohibition approach. In fact, a Russian lawmaker said in March that Russia might start accepting Bitcoin for oil payments, following international sanctions imposed on the country.

Within months, the central bank revised its position, saying it had no objections to using cryptocurrencies “in principle” for cross-border payments.

Previously, the Russian government had approved the passage of a law prohibiting cryptocurrency as a domestic medium of exchange in June. It is aimed at strengthening the national currency of the Russian ruble. The law was approved by President Vladimir Putin one month later.

President Putin has shown interest in harnessing Russia's natural and energy resources for the Bitcoin mining sector.

"We have a certain competitive advantage here, especially in so-called mining," he said. "I mean the surplus of electricity and trained personnel available in this country."

The decision of the Central Bank and the Ministry of Finance of Russia on the use of cryptocurrencies for international payments has a positive impact on the future utility of cryptocurrencies.