Russian Central Bank Neglects Crypto in International Trade, Senator Claims
A senator in Russia has accused the country’s Central Bank of ignoring the use of cryptocurrencies as a payment tool in international trade. Ivan Abramov, the First Deputy Chairman of the Federation Council Committee on Economic Policy, called for regulation and urged the Central Bank to establish rules for the crypto sector. Reports indicate that smaller Russian importers and exporters have turned to stablecoins pegged to fiat currencies for payments. Some traders are now using cryptoassets alongside foreign currencies like the Emirati dirham and Chinese yuan.
Increasing Use of Crypto in Russia, Calls for Regulation
Abramov highlighted a significant increase in crypto usage in Russia and called on lawmakers to introduce comprehensive regulations for cryptocurrencies by the end of 2024. However, it is believed that larger Russian firms will not actively adopt cryptocurrencies as a payment method, favoring fiat currencies instead.
The Russian Central Bank’s Stance on Crypto
The Central Bank of Russia remains opposed to the use of cryptocurrencies in the domestic economy. It even plans to require industrial miners to sell their coins overseas. The bank’s head, Elvira Nabiullina, is known for her skepticism towards cryptocurrencies. Although she has mentioned the possibility of creating an experimental sandbox for crypto usage, she has also stated that Russian firms are already conducting overseas business using cryptocurrencies without waiting for regulatory action.
Hot Take: The Future of Crypto in Russian Trade
While smaller Russian companies are embracing cryptocurrencies as a payment tool in international trade, larger players seem hesitant to adopt this method. The Russian government aims to launch experimental projects using a central bank digital currency (CBDC) for trade with partners like China. However, it remains uncertain whether cryptocurrencies will become a widely accepted payment tool for Russian firms. The Central Bank’s focus on developing a digital ruble suggests that it sees CBDCs as an alternative to both cryptocurrencies and traditional fiat currencies in the future.
By
By
By