Russia continues its moves toward crypto amid the biting economic sanctions.
Russia is reportedly considering establishing two cryptocurrency exchanges to facilitate foreign economic activities, as reported by local media outlet Kommersant on August 23.
The proposed exchanges, to be located in Moscow and St. Petersburg, will serve as hubs for international trade. Mikhail Uspensky, a member of the State Duma’s legislative committee on crypto regulation, indicated that these exchanges will initially be accessible to a limited number of users but will eventually open up to major firms, including exporters and importers in Russia.
Uspensky also mentioned that small and medium-sized businesses, as well as individuals, are unlikely to gain immediate access to these exchanges. He stated, “It is important to emphasize once again that the contours of the future experiment are entirely at the mercy of the regulator.”
Stablecoins
To support this initiative, there are plans to issue stablecoins pegged to the Chinese yuan and a basket of BRICS currencies. BRICS is an intergovernmental group comprising Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates. The organization aims to unite leading developing nations to challenge the economic and political influence of wealthier countries.
The Yuan-linked stablecoin is intended to reduce reliance on the US Dollar and strengthen trade agreements among BRICS member states. This development follows a statement by Russia’s Deputy Foreign Minister, Sergei Ryabkov, in May, indicating that BRICS nations were considering stablecoins for financial and trade transactions.
Russia’s Shift Toward Crypto
These initiatives reflect Russia’s accelerated shift towards cryptocurrency following economic sanctions imposed due to its invasion of Ukraine. Previously, the country had taken a cautious approach to the emerging crypto industry but has made significant strides towards embracing it this year.
In recent months, the Russian State Duma has passed a bill legalizing Bitcoin mining and has considered legalizing the use of stablecoins for international payments. Additionally, Russia is advancing the use of the Russian Ruble central bank digital currency (CBDC).
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