crypto for all
Join
A
A

Russia's Crypto Legalization Looms: Central Bank Shifts Course

Fri 05 Jul 2024 ▪ 3 min read ▪ by Fenelon L.
Getting informed Crypto regulation

The Russian Central Bank now encourages the use of crypto in international transactions. This surprising decision aims to bypass the economic sanctions imposed by the West following the conflict in Ukraine.

Bitcoin in Russia's central bank

Crypto, an unexpected economic weapon for Russia

Facing the financial isolation imposed by the West, Moscow innovates. Elvira Nabiullina, governor of the Russian Central Bank, announced a relaxation of the institution’s stance on the use of crypto in international payments.

New financial technologies create opportunities for schemes that did not exist before. That is why we have relaxed our stance on the use of cryptos in international payments.“, she stated during a conference in Saint Petersburg.

This decision is part of a broader strategy to circumvent sanctions. Russian companies are encouraged to explore alternative payment solutions, including digital assets. This strategy aims to maintain trade flows with key partners like China, India, or the United Arab Emirates.

According to Nabiullina, “companies have become very flexible, very enterprising. They find ways to resolve this and often do not even share them with us.

Towards a new global financial system?

The Russian initiative could catalyze the creation of a parallel financial system. The BRICS, of which Russia is a member, are already working on the “BRICS Bridge,” a multilateral digital settlement and payment platform. This project aims to reduce dependency on the Western financial system dominated by the dollar.

However, Nabiullina tempers expectations, emphasizing that the development of such a system “will take time.”

The recent expansion of the BRICS to ten countries, now including Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates, could accelerate this process, creating an economic bloc capable of challenging Western financial hegemony.

Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.



Join the program
A
A
Fenelon L. avatar
Fenelon L.

Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.