Russia to launch crypto payment tests in response to US sanctions pressure: report

The Russian government will soon begin testing cryptocurrency exchanges and the use of digital tokens for cross-border transactions.

According to a Bloomberg report, they are scheduled to begin on September 1 and are aimed at easing the payment difficulties of local companies dealing with international sanctions.

Cryptography tests

The tests will focus on the exchange between rubles and cryptocurrencies, offering a potential lifeline to businesses struggling with cross-border payments.

Since the US imposed a tougher embargo in June, which broadened the criteria for sanctioning foreign banks that deal with Russia, the country has faced increasing challenges paying foreign suppliers and receiving payments for exported goods.

This development follows recent legislative changes aimed at integrating digital assets into Russia’s financial system.

In July, its parliament passed bills to legalize crypto mining and to create a framework for testing digital tokens in cross-border payments, all under the supervision of the Central Bank. President Vladimir Putin signed those bills into law on August 8, paving the way for the upcoming trials.

The move to experiment with cryptocurrencies represents a change in the central bank’s position in 2022. At the time, the bank advocated a blanket ban on the use and creation of digital assets, citing concerns about financial stability and activities illegal

According to the state news agency Tass, Finance Minister Anton Siluanov, speaking at a forum on August 14, acknowledged the authorities’ ongoing efforts to find ways to legalize the exchanges.

“We still haven’t found a solution on how to do that,” he admitted, highlighting the complexities of integrating digital currencies into the national financial infrastructure.

Crypto trials could lead to official platforms by 2025

This initiative will be closely monitored by the central bank, which selected the National Payment Card System (NPCS) for testing because of its existing infrastructure and regulatory framework.

The system, established in 2014, is known for operating Mir cards and instant interbank payment systems and is fully regulated by the Central Bank of Russia, making it a suitable platform for the first official tests of cryptocurrency exchange of the country

If successful, this could pave the way for the Moscow Stock Exchange and St. Petersburg Foreign Exchange to launch official cryptocurrency platforms as soon as next year.

According to the sources, any existing digital asset will be eligible for use in the tests, which could significantly expand the reach of electronic financial transactions in the country.

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