A few days after the two institutions agreed on the need for cross-border crypto payments, the Ministry of Finance and the Central Bank of Russia are once again highlighting their different priorities. As the Treasury Department aims to legalize cryptocurrency payments in the coming months, the monetary authority says it will “actively promote” its digital currency for international settlements.
Bank of Russia seeks to impose digital ruble for international settlements
The Central Bank of Russia (CBR) will “actively promote” the use of the digital ruble in cross-border payments, its governor Elvira Nabiullina said in a documentary broadcast by the Russia-24 television channel. The film was dedicated to the 220th anniversary of the Ministry of Finance of the Russian Federation.
The department recently announced that it has reached an agreement with the monetary authority on the need to legalize international crypto payments in the face of Western sanctions. Under current conditions, “it is impossible to do without cross-border cryptocurrency settlements,” the two regulators concluded, according to the ministry.
These payments are expected to be legalized soon, Deputy Finance Minister Alexey Moiseev told Russian media. Anatoly Aksakov, head of the Financial Markets Committee at the State Duma, Russia’s lower house of parliament, has also joined calls to allow crypto payments in foreign trade.
In the context of these statements by government officials on the importance of using cryptocurrency as a means of payment that can reduce the pressure of sanctions on Russian exporters and importers, the CBR has indicated that it intends to give priority to the use of digital currency issued by the State.
In his interview, quoted by Bits.media and RBC Crypto, Nabiullina insisted that digital financial assets (DFAs), those that have an issuer under current Russian law, “are a desirable alternative to private cryptocurrencies.” . Russia is also exploring stable colonies with friendly nations.
CBR will start introducing the digital ruble domestically in 2023
The governor pointed out that many Russian banks and other financial organizations are interested in or are already participating in the Russian central bank’s digital currency pilot project (CBDC), which will be completed next year. She also noted that the digital ruble platform will be linked to digital currencies of other nations. The CBR President said:
We will actively promote the possibility of cross-border payments using the digital ruble.
Nabiullina added that subject to the success of the pilot project, the Bank of Russia will start gradually introducing the digital ruble into national circulation in 2023, carrying out certain types of operations with the government-backed coin.
Meanwhile, the Finance Ministry plans to start the process of regulating cross-border crypto payments during the fall session of the State Duma, Moiseev said at the Eastern Economic Forum in Vladivostok this week. The official noted that even now such payments are not prohibited, but stressed the need to legally regulate the exchange of cryptocurrency with fiat currency.
Do you think Russia will adopt both digital ruble and cryptocurrency in international settlements? Tell us in the comments section below.
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