Russia nears crypto exchange trials to bypass sanctions: report

Russia is said to be testing cryptocurrency exchanges and token transactions for cross-border payments in an effort to reduce the impact of international sanctions.

Russia is days away from starting trials for cross-border cryptocurrency exchanges and token transactions to overcome the challenges of international sanctions, Bloomberg reported, citing sources familiar with the matter.

The trials, scheduled to begin on September 1, will involve using the National Payment Card System to facilitate exchanges between Russian rubles and cryptocurrencies, the sources said. The initiative follows recent legislation by the Russian parliament legalizing crypto mining and creating a framework for testing digital tokens for cross-border payments under the supervision of the central bank.

The move comes as Russian businesses face increasing difficulties in paying foreign suppliers and receiving export payments due to sanctions. Some major Russian metals producers have already started using stablecoins in transactions with China as traditional payment methods remain restricted.

In mid-August, reports emerged that Russia was planning to launch at least two local cryptocurrency exchanges, one of which would use the infrastructure of the St. Petersburg International Commodity Exchange and the other in Moscow, but details are still unclear.

The National Payment Card System, created by the central bank in 2014, operates Mir cards and Russian instant interbank payment systems. The sources said authorities chose the network for the crypto exchange trials because of its existing infrastructure, which includes interbank payment and clearing capabilities.

If successful, the trials could lead to the launch of crypto platforms by the Moscow Exchange and the St. Petersburg Currency Exchange next year, the sources added. The experiment would allow the use of any existing crypto, according to people familiar with the plans.