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Home » The Bank of Russia is preparing a pilot plan to use Bitcoin in international payments

The Bank of Russia is preparing a pilot plan to use Bitcoin in international payments

Important facts:
  • Authorized organizations are created to facilitate cross-border payments using cryptocurrencies.

  • The Russian bank has had a strong stance on cryptocurrencies so far.

The Central Bank of Russia continues to indicate a change in position regarding the use of Bitcoin (BTC) and cryptocurrencies for international payments.

The organization’s president, Elvira Nabiullina, said this week they are preparing a regulation that will initially allow the use of these assets in cross-border negotiations “in an experimental way”.

According to the Russian news agency Tass, the official stressed that the position of ban the use of crypto assets on Russian territory. However, he acknowledged that cryptocurrencies can be widely used in international engagements. This is in keeping with the fact that these assets are life in global systems.

For this reason he announced that he would prepare a draft law focused on a legal and experimental regimei.e. a pilot plan using virtual assets for cross-border payments.

According to Nabiullina, with this project they will create special authorized organizations. They will be responsible for usage digital assets in economic activity with foreign companies. Although they don’t make it clear, these companies will also be dedicated to mining Bitcoin and other cryptocurrencies, with government approval.

He clarified that they want to include cryptocurrencies in the project as well to traditional digital financial assetssuch as central bank digital currencies (CBDCs). “The project aims to solve the problem of using digital financial assets for international agreements,” he noted.

“The Bank of Russia already has what it takes to make international payments with digital assets”

On the same subject, Vice-President of the Central Bank of Russia Alexei Guznov said that the monetary unit and the government are discussing What organizations will be associated with the bitcoin industry? which support them with international payments.

“Together with the government, a discussion is currently taking place to clarify what field of activity these organizations will have, which banks they will serve, to what extent they will be able to interact with representatives dealing with foreign trade activities,” Guznov noted . .

In this context also Nabiullina called this Wednesday that the Bank of Russia already has the “necessary infrastructure solutions”. to develop international payments. I also note that the institution is ready to adapt these solutions “to the needs of partners”.

Without specifically pointing this out, Nabiullina hinted that the Russian financial system is preparing for the arrival of cryptocurrencies. At least at the level of foreign trade. The foregoing, considering that according to the official, they “want to break down barriers to expand economic ties with allied countries.”

The representative of the Central Bank of Russia has already commented on the use of bitcoin and cryptocurrencies for foreign trade. In May 2022, he softened his stance, suggesting these assets could be used for international payments.

The announcement of the Russian bank comes in a context in which the Eurasian country Find a way to circumvent western sanctions. These were requested from them because they invaded Ukraine militarily in February 2022. Since then, the use of cryptocurrencies has been evaluated to create an opportunity for international trade.

Bank of Russia’s stance has been quite anti-crypto. Spring: Wikipedia.

The central bank is now supporting the Russian government’s idea

With the comments of the Governor of the Central Bank of Russia, the monetary entity appears to be acknowledging the benefits of these assets for the international trade of the Eurasian country.

It must be remembered that in early 2022 the largest Russian bank clearly opposed the use of Bitcoin and cryptocurrencies. Only after the positive vision of the government of Vladimir Putin on the ecosystem was a change in perspective observed in the monetary unit.

And it is that shortly after the start of the war in Ukraine, the federal government of Russia started to float the idea of ​​turning to cryptocurrencies for international obligations. This due the challenges left by US economic sanctions and several countries in Europe.

As recently as September last year, that country’s deputy finance minister, Alexei Moiseev, acknowledged that the geopolitical situation forced the executive branch to reconsider its position on the cryptocurrency ecosystem for cross-border payments. It was subsequently confirmed that Russia would allow these assets to be used for international payments, but through monitored wallets.

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