Amid sanctions, Russia uses cryptocurrencies for international payments: report

The Russian Federation is reportedly considering accepting cryptocurrencies for international payments in response to Western sanctions on the country following a full-scale invasion of Ukraine earlier this year.

Moscow-based Interfax and Reuters report On Friday, Ivan Chebeskov, head of the Financial Policy Department of the Russian Ministry of Finance, was actively considering the possibility of including crypto payments. “The idea of ​​using digital currencies in international settlement transactions is being actively discussed,” he said.

According to local newspaper Vedomosti, the Ministry of Finance is considering adding proposals on international payments to an updated version of the still-under-construction crypto law.

Support for the legalization of cryptocurrencies appears to be coming from various branches of the Russian government. According to Trade Minister Denis Manturov, Moscow plans to legalize crypto payments “Sooner rather than later.” In April, the country’s finance ministry supported legalization in a bill titled “On Digital Currency.”

related: Russia’s Updated Crypto Mining Bill Cuts Tax Amnesty for Bitcoin Miners

That same month, the head of Russia’s central bank admitted that the central bank was reconsidering its hostile stance on digital assets. Central Bank Governor Elvira Nabiullina Said that cryptocurrencies are seen as one of several measures to mitigate the impact of Western sanctions on Russia’s economy.

Given that the crypto market is in Not big enough or not liquid enough Support the transaction needs of sovereign states. First, the Office of Foreign Assets Control has prohibited any U.S. person from doing business with an individual or entity on its Specially Designated Nationals and Blocked Persons (SDN) list.

Regardless of the payment system used, there is a ban on doing business with Russian SDNs. Jake Chervinsky, head of policy at the American Blockchain Association, explain:

“There is no reason to think that the existence of cryptocurrencies will convince any of them to knowingly violate sanctions laws and risk fines and jail time.