Russian Parliament Set to Approve Use of ‘Digital Assets’ in International Payments

Russian parliament members could this week approve legislation that will allow firms in the nation to use “digital financial assets” in the international payments space.

Per RBC, the draft law excludes crypto – although many Russian firms are already using tokens like Bitcoin (BTC) to trade with overseas partners.

Russian Parliament ‘Could Vote on Law as Early as Feb 27’

The State Duma Committee on the Financial Markets approved new amendments to the draft law on February 21.

The bill has already passed a first reading in the lower parliamentary house and requires a second reading before Senate approval.

These amendments propose allowing “the use of digital assets in foreign trade transactions between residents [of Russia] and non-residents.”

They also propose allowing traders to “make use of these assets in contracts and transactions.”

In the past, politicians have used terms like “digital assets” and “digital financial assets” (DFAs) to speak about everything from Bitcoin, to altcoins, CBDCs, stablecoins, and digitized commodities.

However, the Committee’s Chairman Anatoly Aksakov hinted that Russian politicians are now using “DFAs” to refer to digital fiats like the digital ruble, as well as regulated, bank-issued stablecoins.

Lawmakers are also using the term to talk about digital securities and commodities. They tend to refer to tokens like BTC as “cryptocurrencies” or “private cryptocurrencies.”

Aksakov said he wanted lawmakers to fast-track the bill’s second reading at the plenary meeting of the Russian parliament on February 27. Aksakov wrote on Telegram:

“The use of digital assets in foreign trade operations will help Russian importers and exporters work more actively with friendly countries.”

‘Technological Barriers Remain,’ Says Expert

The MP also claimed that the draft law would help “partially mitigate” the impact of Western sanctions on the Russian economy.

The latest round of Russia sanctions unveiled Friday targeted hundreds of people and entities from around the globe https://t.co/0DfGxIfYzU

— Bloomberg Markets (@markets) February 23, 2024

The USA, the EU, the UK, and others this month unveiled fresh sanctions on Russia as war continues in Ukraine.

Moscow, however, has claimed that its fast-tracked digital ruble project will help it do away with dollar-denominated trade.

Key Russia allies like Belarus and Kazakhstan are also stepping up their CBDC efforts. And Moscow claims its coin could be “compatible” with China’s digital yuan.

Experts expressed caution about the draft law, however. Maria Telegina of the Moscow Digital School said “technological barriers” may hamper “the use of digital assets in international payments.”

Telegina added that the bill “does not in any way address issues related to the use of cryptocurrency for international payments.”