Russia has started settling on the new deal in the cryptocurrency market with partners from other countries.
Russia is still new in the business, but it is coming up strong causing an increase in their transactions which comes even before the authorities decide to regulate the transactions.
Amidst the conflict between Ukraine and Russia, companies have started using cryptocurrencies despite the new regulations for this payment type that will be effected earliest by 2023.
Russia Cross-Border Transactions
The Director of the Financial Policy Department at the Ministry of Finance, Ivan Chebeskov, has revealed that cross-border transactions are being carried out but limitedly. However, he still acknowledges the trend in conversation with the Russian daily Izvestia.
“I cannot deny that Russian companies are now actively using digital payment platforms, and this includes cryptocurrencies,” said Vladimir Gamza, who is the head of industrial, financial, and investment policy at the council of the Chamber of Commerce and Industry of the Russian Federation, accepting the fact that the cryptocurrency in the country was on the increase on a daily.
Gamza added that this was adopted to deal with Russia’s invasion.
The global payment messaging system SWIFT cut off Russian banks from its design, leading Russia to financial restrictions.
These restrictions have affected and led to a decrease in the U.S Dollars, Euros, and other fiat currencies in the country.
Gamza stated that digital coins are mainly used in settlement with what is called ’unfriendly countries, primarily for exports and payment of import components for the manufacturing sector.
The number of crypto transactions may increase the use of crypto against the backdrop of sanctions predicted by Gamza, as cryptocurrencies are also used to pay for the import of consumer goods.
What Does This Mean For Russia?
Ivan Chebeskov said the Finance Ministry and the Central Bank of Russia intended to allow international cryptocurrency for any industry without restrictions because Russia would need to try all alternatives to replace the SWIFT payments.
He said it would be helpful for the country and the business owners to get an alternative as soon as possible.
The Russian authorities have tried all means to regulate the amount of crypto used in the country, but the sanction has had them change their minds to legalize at least cross-border transactions with cryptocurrency.
The head of the parliamentary financial market committee Anatoly Aksakov indicated that businesses in the country might be permitted to choose the coin they wanted to use in their businesses instead of restricting them.
The European Union (EU) recently confirmed a ban on providing crypto services to Russia. The Bloc has introduced the eighth set of economic and political measures as part of sanctions against Russia for invading Ukraine.
“The existing prohibitions on crypto assets have been tightened by banning all crypto-asset wallets, accounts, or custody services, irrespective of the amount of the wallet,” said the Bloc in a statement on Thursday.