Russia's financial authorities are reportedly moving towards adopting crypto-currency for international trade, the Vedomosti business daily has reported, citing sources. A focus group comprising selected importers and banks has been established to pilot international trade settlements using digital currencies, according to the outlet.
The group reportedly consists of members of the Russian Chamber of Commerce, and the Association of Electronics Developers and Manufacturers, as well as several lenders. The selected companies and institutions have been facing challenges with conducting cross-border settlements while paying for dual-use goods. Such products could “theoretically” be used for both civilian and military purposes, and are subject to international restrictions.
Earlier this year, the Russian government passed legislation allowing the Bank of Russia to authorize selected companies to use digital currency for international payments in trade. The measure came into force on September 1.
The central bank is planning to attract more participants to the experiment later, an unnamed source told the news outlet, adding that the timing for the expansion of the project is currently unclear.
Earlier this year, President Vladimir Putin raised the issue of regulating cryptocurrencies and digital assets, noting that it was a promising economic area. He said it was vital for the country “to seize the moment” and promptly create a legal framework and regulation, develop infrastructure, and create conditions for the circulation of digital assets, both within the country and in relations with foreign partners.
The head of the Russian central bank, Elvira Nabiullina, said at the time that the regulator would conduct the first cross-border crypto payments by the end of the current year.
In May, Bloomberg reported that at least two top metals producers that had not been sanctioned were using Tether’s stable coin for cross-border transactions with Chinese partners, bypassing restrictions tied to the US dollar.