As a seasoned analyst with over two decades of experience in global finance and geopolitics, this recent move by Russia to explore crypto payments for foreign trade strikes me as a strategic maneuver aimed at circumventing international payment restrictions and bolstering their economic independence. The focus on dual-use goods and the collaboration with Chinese and Western counterparts suggests a well-thought-out strategy that leverages the decentralized nature of cryptocurrencies to bypass traditional financial barriers.
The Russian administration is assembling an advisory panel to test cryptocurrency transactions for international commerce, particularly targeting importers of products that could have potential uses in the military sector.
A focus group has been set up in Russia under an experimental legal framework to investigate the potential use of cryptocurrencies for foreign trade transactions. This was reported by Russia’s Vedomosti newspaper on September 17th. The purpose of this initiative appears to be tackling difficulties encountered by importers dealing with goods that possess both civilian and military uses, which are subject to stringent international payment limitations.
Starting September 1st, China’s decision to prohibit the export of non-regulated civilian drones, a trend observed in military conflicts over the past few years, will be enforced. This move was announced in early August.
The report mentions that the focus group comprises representatives from the Russian Chamber of Commerce and Industry, the Electronics Developers and Producers Association, plus various banks. However, it’s unclear if these banks are exclusively Russian or if they include international financial institutions as well.
The project is created to help importers facing difficulties in banking transactions, particularly those dealing with sensitive goods in China and other countries. This action comes after news broke that Russia’s major unsanctioned metal producers have started utilizing Tether’s stablecoin (USDT) for international transactions with Chinese clients and vendors. This step appears to be a reaction to the U.S. Treasury Department’s warnings about potential secondary sanctions.
Presently, it’s being said that those knowledgeable about the subject claim the individuals chosen for the focus group were selected based on their company’s revenue, with bigger corporations given preference. The Russian administration is looking to broaden this program in the future, but the exact timeline for a wider launch has yet to be determined.
At the start of July, Alexei Guznov, a deputy governor at Russia’s central bank, mentioned in an interview with media outlets that the Bank of Russia is considering making stablecoins legal for cross-border transactions. Guznov added that this project might evolve from a temporary trial to a long-term regulatory system, but no details about when it may be approved were given.
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2024-09-17 10:42