Russia is considering adding the subject of stablecoins to an upcoming bill, allowing them to be used officially for completing cross-border payments. Alexey Guznov, Deputy Chairman of the Bank of Russia, declared that proposals have already been presented and the issue is now being discussed. The Ministry of Finance also confirmed that this is being worked on.
Russia to Enact Regulations Allowing Stablecoins to Be Used for Cross-Border Settlements
Russia is in the process of enabling stablecoins to be used as a trade tool for international settlements. According to Alexey Guznov, Deputy Chairman of the Bank of Russia, this issue has already been proposed and the possibility of approving stablecoins for this use case is being discussed. However, Guznov acknowledged that some technicalities need to be resolved, including regulating the entire chain that allows individuals and companies to receive these digital currencies, store them, and then use them to complete international payments.
Guznov stated:
> “Understanding is still being formed, and I hope that in the near future it will be reflected in the text of the bill.”
According to Izvestia, the press service of the Ministry of Finance also confirmed that this issue is being worked on. There is the possibility that this could be enabled permanently, as it happened with the approval of the digital financial assets (DFA) law passed in March.
Different Russian personalities have declared in favor of using stablecoins, tokens pegged to the value of other assets or fiat currencies (mostly the U.S. dollar), for cross-border settlements due to their versatility and lack of volatility at the time of making payments. Alexander Murychev, executive vice president of the Russian Union of Industrialists and Entrepreneurs, stated these were “very promising” in this regard.
In the same way, Natalia Milchakova, a leading analyst at Freedom Finance Global, stated that stablecoin transactions were hard to track for third-country regulators, making them attractive for making payments without fearing secondary sanctions from Western countries.
These payments are already taking place, albeit at a small scale. In June, reports indicated that two top Russian metal producers were using Tether’s USDT to pay and receive payments from Chinese counterparts.
Elvira Nabiullina, Governor of the Bank of Russia, recently stated the institution had softened its stance on leveraging crypto for international payments, encouraging its use to avoid Western sanctions.
