Cryptocurrency for International Trade in Russia?

Photo of author

By A D

Russia has been exploring the potential of cryptocurrency for some time now, and this latest move is an indication that the country is serious about adopting digital assets.

Cryptocurrency has been gaining popularity globally, and now Russia is considering using it for international settlements. The country is preparing a draft law that would allow the use of cryptocurrency for international trade.

The move to allow crypto for international trade is aimed at reducing the dependence on the US dollar and other traditional currencies. The Central Bank is concurrently discussing which institutions can be permitted to do the same. Russia has been facing economic sanctions from Western countries for years, and the use of cryptocurrency could be a way to circumvent those sanctions.

Earlier this year, the country had revealed plans to open cryptocurrency exchanges in the country. The exchanges are expected to launch in the second quarter of 2023.

Since both firms and individuals would have access to this, Russian companies will be able to do foreign commerce using cryptocurrency, including for parallel imports. This move would make it easier for Russians to buy and sell cryptocurrencies, and it could also boost the country’s economy.

The Russian government has been cautious about cryptocurrency in the past, and there have been rumors of a potential ban on crypto.

However, these recent developments suggest that the government is now more open to the idea of digital assets. On the CBDC front, Russia has also been making progress. It is anticipated that Russian banks will soon begin testing the digital ruble CBDC with consumers.

It is worth noting that Russia has also become the world’s second-largest cryptocurrency miner. The country has seen a significant increase in mining activity, with several large mining farms being set up in the region.

This growth in mining activity can be attributed to the country’s abundant and cheap energy resources, which are crucial for profitable mining operations. Russian miners have been able to take advantage of the country’s low electricity costs to make their operations more profitable.

The Russian government has also taken steps to support the development of the mining industry in the country. For instance, it has proposed a law that would provide tax breaks for mining companies, which could further boost the growth of the industry.

Leave a Comment