Russia nears crypto exchange trials to bypass sanctions: report

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As a seasoned crypto investor with a keen interest in global financial developments, I find Russia’s foray into cryptocurrencies and cross-border transactions particularly intriguing. Having navigated through the 2018 bear market and witnessing Bitcoin’s subsequent resurgence, I can’t help but see parallels between the current situation in Russia and the potential opportunities that lie ahead.

It’s reported that Russia will commence trials involving cryptocurrency exchanges and token transfers for cross-border transactions, aiming to lessen the effects of international sanctions.

It seems that Russia is nearly ready to initiate tests on cryptocurrency exchanges and cross-border transactions involving tokens, as a potential strategy to circumvent difficulties posed by international sanctions, according to information obtained by Bloomberg from reliable sources.

Starting September 1st, I’ll be participating in trials that aim to streamline the conversion between Russian rubles and cryptocurrencies through the National Payment Card System. This initiative is an extension of recent legislative actions taken by Russia’s parliament, which not only legalizes crypto mining but also sets up a regulatory framework for testing digital tokens intended for cross-border payments, all under the watchful eye of the central bank.

The move comes as Russian businesses face increasing difficulties in paying foreign suppliers and receiving payments for exports due to sanctions. Some major Russian metal producers have already started using stablecoins for transactions with China, as traditional payment methods have become constrained.

By the middle of August, it was reported that Russia may set up a couple of its own cryptocurrency trading platforms. One of these might leverage the system of the St. Petersburg International Mercantile Exchange, while another could be situated in Moscow. However, specifics about these plans are still vague.

In 2014, a payment card system known as the National Payment System was established by the central bank. This system currently handles Mir cards and Russian instant interbank transfer systems. The reason officials have chosen this network for crypto exchange trials is because of its existing infrastructure, which encompasses capabilities for interbank settlement and clearing. According to sources, this was the selected choice.

Should the trials prove fruitful, these crypto ventures might be initiated by both the Moscow Exchange and the St. Petersburg Currency Exchange as early as next year, sources suggest. This project is designed to facilitate the utilization of a variety of currently available cryptocurrencies, according to those privy to the plans.

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2024-08-27 11:10