Russian firms have been settling cryptocurrency payments with partners overseas, as they are limited in their global access. These are small-scale transactions, but government officials noted an increase in these payments even before they were regulated.
Cross-Border Crypto Settlements in Russia on the Rise as US Dollars and Euro Payments Fall
A government representative revealed that despite the fact that Russia has imposed sanctions on companies operating in Ukraine, they have begun to use cryptocurrencies. However, the regulations are due to become effective in 2023.
In conversation with Izvestia, the Russian newspaper Izvestia, Ivan Chebeskov, Director of Financial Policy Department of the Ministry of Finance acknowledged this trend. However, he also said that these cross-border settlements were still limited.
Russian businesses are currently using digital payments instruments including cryptocurrency, said Vladimir Gamza of the Council of the Chamber of Commerce and Industry of the Russian Federation.
Gamza told the newspaper also that because of financial restrictions, U.S. dollar, euro and other fiat currencies payments have been reduced to a minimum. As part of the measures adopted in response to Russia’s invasion, Russian banks were cut off from SWIFT, the global payment messaging system.
The executive further elaborated that digital coins are now mainly utilized in settlements with what he referred to as “unfriendly countries,” primarily for Russian exports and in payments for import components for the manufacturing sector.
Also, cryptocurrencies can be used to purchase consumer goods imports. Vladimir Gamza predicts that crypto-related cross-border transactions could see an increase of severalfold in the face of the sanctions.
It’s important to try all alternatives to the SWIFT payments, Ivan Chebeskov was quoted by RBC Crypto as saying earlier this week. The Finance Ministry and Central Bank of Russia have also revealed that they intend to accept international cryptocurrency payments from any industry without restriction.
Throughout the year, Russian authorities have been mulling over how to regulate the country’s crypto space and sanctions have convinced them they need to legalize at least cross-border payments with cryptocurrencies. Anatoly Aksakov, head of the Financial Market Committee in the Russian Parliament suggested that Russian companies may have the option to select which cryptocurrency they wish to use.
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