Russia Allows International Trade in Cryptocurrency for Any Industry
The Finance Ministry of Russia is looking to facilitate a more accommodating cryptocurrency policy, as it plans to permit the use of digital assets for international settlements in any industry without restrictions.
The Russian Ministry of Finance acknowledges the growing significance of cryptocurrencies within the transcontinental country as its offenses against Ukraine bring stricter restrictions on its international payment processes.
The Russian News Agency TASS uncovered the development on Monday in an official report. The report cites Ivan Chebeskov, the Finance Ministry's Director of Financial Policy Department, as he revealed the development in a recent interview.
"We are going to allow international settlements in cryptocurrencies for any industries without restrictions," Chebeskov mentioned. He highlighted the Finance Ministry's acknowledgement of the importance of cryptocurrencies to local and international settlements in Russia.
According to Chebeskov, the Ministry of Finance has a more progressive outlook on cryptocurrencies than the Central Bank of Russia.
He noted that both agencies' difference in their sentiments towards digital assets is patent in the fact that the Ministry is seeking to establish a more conducive framework for the asset class. This should encourage a less restrictive circulation of cryptocurrencies within Russia.
Chebeskov further added that the Ministry thinks Russia is in need of a properly developed local cryptocurrency infrastructure. He noted that this would help facilitate better consumer protection measures. Additionally, a proper framework will promote better oversight in the cryptocurrency industry to check illegal usage.
Russia aims to eliminate the need for SWIFT with the digital ruble
Despite Western sanctions resulting from its invasion of Ukraine, the Russian government's rate of cryptocurrency adoption has been surprisingly slow. Although the Central Bank appears to be adopting a more progressive view of digital assets, it hasn't completely welcomed the industry without restrictions.
The Finance Ministry of Russia, on the other hand, is pushing for a less restrictive framework. Notwithstanding its less progressive attitude on cryptocurrencies, the Russian central bank has gone all-in on its CBDC plan.
The Bank of Russia plans to proceed with actual tests of the protocol of its digital ruble on clients in 2023. This goal was revealed in an August report. Additionally, the central bank will connect all banks in Russia to the digital ruble in 2024.
Russia is looking to eliminate the need for the SWIFT payment system, which it has seen a ban from. The digital ruble will help facilitate international settlements for the country independent of a payment system controlled by the West.
Meanwhile, last month, the European Union revealed plans to restrict crypto payments from Russia to European crypto wallets.