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Russian Lawmakers Approve Cryptocurrency Use in International Trade

By  |  July 30, 2024

Russian lawmakers have passed a bill allowing businesses to use cryptocurrencies in international trade. This legislative shift is part of Russia’s broader strategy to navigate the economic constraints imposed after its invasion of Ukraine.

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    According to Reuters, the new law is slated to take effect in September. Elvira Nabiullina, Governor of the Russian central bank and a prominent supporter of the legislation, indicated that the initial cryptocurrency trade transactions are expected to occur by the end of this year.

    Russia’s international trade has encountered substantial delays, particularly with major partners such as China, India, and the United Arab Emirates. These delays are attributed to increased caution among banks in these countries, influenced by Western regulatory pressures.

    Related: MPs Agree UK Must Pass Crypto Regulation By 2025

    Anatoly Aksakov, head of the Duma’s lower house of parliament, emphasized the significance of this development. “We are taking a historic decision in the financial sphere,” he stated, addressing fellow lawmakers.

    The new legislation mandates the creation of an “experimental” infrastructure for cryptocurrency payments by the central bank. While the specifics of this infrastructure remain undisclosed, it represents a pivotal step towards integrating digital currencies into Russia’s financial ecosystem.

    Per Reuters, this move is seen as a crucial attempt by Russia to maintain its economic activities amidst the tightening grip of international sanctions. The implementation of cryptocurrency payments is anticipated to provide a more resilient framework for Russia’s international trade dealings.

    Source: Reuters