Russia’s Central Bank Looks to Use Crypto for International Trade

Russia’s Central Bank Looks to Use Crypto for International Trade

The Central Bank of Russia revealed that it is considering allowing the use of crypto for international trade payments. A senior bank official revealed the information on Tuesday, in a sign of a possible relaxation of its ban on digital currencies.

“In principle, we do not object to the use of cryptocurrency in international transactions,” said the First Deputy Governor of the Central Bank, Ksenia Yudaeva.

“We still believe that the active use of cryptocurrency within the country, especially within Russia’s financial infrastructure, creates great risks for citizens and users. We believe that in our country those risks could be reasonably large,” she said.

The Central Bank is moving forward with the idea in a hope to help the country mitigate the impact of western sanctions imposed on Moscow.

Recently, Ivan Chebeskov, head of the finance ministry’s financial policy department, said that Russia might soon allow Cryptocurrency for international payments as the idea of using digital currencies in international transactions is being actively discussed. 

When Russia invaded Ukraine in late February, the EU, the US, and other allies cut off Russia’s access to roughly $600 billion in foreign currency reserves. They also blocked Russian banks from using the Swift international financial communications system.

Banks now have adequate foreign currency liquidity, decreasing overall risks from the sanctions to financial stability, as per Yudaeva.

Simultaneously, Yudaeva claimed that the Bank of Russia still sees the use of cryptocurrency within the country as a financial threat.

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