The central bank of Russia and finance ministry have reaffirmed their divergent priorities days after they agreed to cross-border cryptocurrency payments. While the treasury department aims for legalizing cryptocurrency payments in the coming months, the monetary authority says it will “actively promote” its digital currency for international settlements.
Bank of Russia aims to impose digital ruble in international settlements
The Central Bank of Russia (CBR) will “actively promote” the employment of the digital ruble in cross-border payments, its Governor Elvira Nabiullina stated in a documentary aired by the Russia-24 TV channel. It was dedicated to the 220th year of the Ministry of Finance of the Russian Federation.
Recently, the department announced that it reached an agreement in principle with the monetary authority regarding the legalization of international cryptocurrency payments. This was in spite of Western sanctions. In the current conditions, “it is impossible to do without cross-border settlements in cryptocurrency,” the two regulators concluded, according to the ministry.
Russian media should soon be able to legalize these payments, Alexey Moiseev, the Deputy Finance Minister said. Anatoly Akosakov, Head of the Financial Market Committee in the State Duma (the lower Russian house), also supported calls for crypto payments to be allowed in foreign trade.
The CBR stated that it will prioritize cryptocurrency use in light of statements made by officials from the government about how important using crypto as a payment method to reduce sanctions on Russian importers and exporters.
In her interview, quoted by Bits.media and RBC Crypto, Nabiullina insisted that digital financial assets (DFAs), those that have an issuer according to current Russian law, “are a desirable alternative to private cryptocurrencies.” Russia is also exploring stablecoin settlements with friendly nations.
The CBR is to Introduce Digital Ruble in the Domestic Market by 2023
He pointed out that many Russian financial institutions and banks were interested in or already participate in the pilot project to create a digital currency for Russia’s central bank (CBDC). This will be finished by next year. Her remarks also included the observation that the digital currency platform for the Russian central bank will be linked with the digital currencies of the other nations. According to the CBR Chairperson:
The possibility of trans-border payments with the digital ruble is something we will promote.
Nabiullina stated that the Bank of Russia would gradually implement the digital ruble into domestic circulation by 2023, subject to completion of pilot. This will be done through certain operations using the government-backed currency.
Moiseev stated this week at the Eastern Economic Forum Vladivostok that while the financial ministry is planning to begin the regulatory process for cross border crypto payments in the Fall Session of the State Duma. The official noted that even now these payments are not banned but emphasized it’s necessary to legally regulate the exchange of cryptocurrency with fiat money.
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