High-ranking Russian legislator has called for the creation of a legal framework that regulates cross-border cryptocurrency payments. His proposal comes after key regulators in Moscow said that Russia needs to allow the use of cryptocurrencies in foreign trade, now that it’s having to deal with serious financial restrictions.
Financial Market Committee Chair Suggests Adopting Legislation for Russia’s Crypto Payments
Anatoly Aksakov is the head of the Financial Market Committee in the State Duma. He believes it’s necessary to offer cross-border cryptocurrency settlements with a legal framework. The lower house of Russian parliament is expected to review crypto-related draft legislation this fall, including a new bill “On Digital Currency,” and Aksakov has been an active participant in these efforts.
The influential member of the lower house of Russian parliament issued the call after earlier this week the Russian finance ministry and central bank agreed that for the country “it is impossible to do without cross-border settlements in cryptocurrency,” in the current circumstances. Russia faces increasing Western sanctions following its invasion of Ukraine.
Aksakov was quoted by Kommersant, a business newspaper, and the RIA Novosti news Agency. He stressed that it is important to determine the legal limits for cryptocurrency use in cross-border settlements. It is also a top priority for Aksakov to make sure that the authorities can identify anyone who enters this market.
“First of all, this requires a legislative basis for a legal and transparent process. At the same time, it is worth remembering the ban on cryptocurrencies as a means of payment in the Russian Federation,” the deputy explained.
The consensus reached with the Ministry of Finance regarding international cryptocurrency payments was not binding. However, the Central Bank of Russia made clear that this development does not aim to legalize crypto payment and exchanges within Russia. The monetary authority suggested a ban on all domestic cryptocurrency activities, including mining, issuing and trading.
As an alternative to sanctioning Russia, stablecoins were discussed. Deputy Finance Minister Alexey Moiseev unveiled that Moscow is working with the governments of several “friendly countries” on the establishment of clearing platforms for international stablecoin settlements as part of efforts to avoid using major fiat currencies such as the U.S. dollar and the euro.
What do you think Russia’s chances of replacing Western fiat money by cryptocurrencies and stablecoins? Please share your thoughts in the comment section.
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