Russia is contemplating the inclusion of stablecoins in an upcoming bill, which would allow their official use for cross-border payments. Alexey Guznov, Deputy Chairman of the Bank of Russia, has revealed that proposals have already been presented and the matter is now under discussion. The Ministry of Finance has also confirmed that progress is being made in this regard.
Russia Plans to Legitimize Stablecoins for International Settlements
Russia is currently in the process of authorizing stablecoins as a means of facilitating international trade. According to Alexey Guznov, Deputy Chairman of the Bank of Russia, the proposal has already been put forward and the potential approval of stablecoins for this purpose is being deliberated. However, Guznov acknowledged that certain technicalities need to be addressed, such as regulating the entire process that allows individuals and businesses to receive, store, and utilize these digital currencies for international payments.
Guznov expressed:
"The understanding is still in the process of being formed, and I hope that it will soon be incorporated into the text of the bill."
The press service of the Ministry of Finance has also confirmed that progress is being made on this matter. There is a possibility that stablecoins could be permanently enabled, similar to the approval of the Digital Financial Assets (DFA) law that was passed in March.
Various Russian figures have expressed support for the use of stablecoins, which are tokens pegged to the value of other assets or fiat currencies (primarily the U.S. dollar), for cross-border settlements due to their versatility and minimal volatility during payment transactions. Alexander Murychev, Executive Vice President of the Russian Union of Industrialists and Entrepreneurs, described stablecoins as "very promising" in this context.
Similarly, Natalia Milchakova, a leading analyst at Freedom Finance Global, highlighted that stablecoin transactions are challenging for regulators in other countries to track, making them an appealing option for making payments without concerns of secondary sanctions from Western nations.
Although these types of payments are already occurring on a small scale, with reports in June indicating that two major Russian metal producers were utilizing Tether's USDT for payments with their Chinese counterparts, Russia aims to establish a regulatory framework to facilitate and govern stablecoin cross-border payments.
Elvira Nabiullina, Governor of the Bank of Russia, recently indicated that the institution has softened its stance on utilizing cryptocurrencies for international payments, encouraging their use as a means to circumvent Western sanctions.
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