Russia’s leading technology company, Rostec, is working on a project to integrate digital assets into cross-border trade. According to the state-owned company, cryptocurrency payments could reduce sanctions on Russian importers and exporters.
Rostec Eyes Russky Island to Test Digital Currency Payments
Rostec is the largest Russian technology and industrial conglomerate. It’s preparing to start a project to integrate cryptocurrencies in cross-border transactions. It will focus on reducing the impact of sanctions on Russian exporters and importers who are under increasing pressure.
The Russian economy, especially foreign trade operations, was hit hard by financial restrictions imposed by the West over Moscow’s military intervention in Ukraine. Officials are now supporting proposals to allow the legalization of the use digital assets for deals with partners. These include stablecoins, cryptocurrencies and the new digital ruble.
Speaking during the “Digital Finance: New Ways of Development” conference at the Eastern Economic Forum this week, Rostec’s Managing Director for National Projects Anna Sharipova unveiled that the corporation is exploring the possibility of testing digital assets as a means of payment for imports and exports. The experimental electronic trading regime on Russky Island off Vladivostok will allow for trials. It is the second largest city in Russia Far East.
Bits.media quoted the executive, saying that the market was now very interested in the introduction of cryptocurrencies to international trade relations. Sharipova stated that consumers and suppliers are often separated by border lines and want to use modern settlement methods in order to avoid the restrictions imposed on them. Rostec experts, with the support of market players and local authorities are developing a launch plan for this project.
Vladivostok news follows this week’s announcement by Alexey Moiseev (Deputy Finance Minister) that his division and the Central Bank of Russia studied crypto currencies and concluded that Russia should legalize and regulate all international payments made in digital assets. Anatoly Ashakov, head of State Duma’s Financial Market Committee, also demanded a legal framework. Later, Bank of Russia indicated that it will also be promoting its digital ruble to the same end.
In late August, Russian Prime Minister Mikhail Mishustin praised digital assets as a “safe alternative” that can ensure uninterrupted international payments. In July, the head of Russia’s financial watchdog, Rosfinmonitoring, Yuri Chikhanchin said that crypto payments are acceptable in foreign trade. Rostec, which is based in Russia, announced that it has developed a blockchain-based solution to SWIFT (the global payment messaging platform) from which many Russian banks had been disconnected. It is intended to allow international settlements to be processed and digital currency storage.
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