Russian authorities may approve the use of stablecoins in cross-border settlements, local media outlet Izvestia reported.
Legalizing stablecoins for international settlements could simplify transactions with BRICS partners and reduce the impact of sanctions.
Russia to Authorize the Use of Stablecoins
Since February 2022, Russian businesses have faced significant payment difficulties due to sanctions and compliance measures. This has impacted both sanctioned companies and those not directly targeted.
Alexei Guznov, chairman of the Central Bank of the Russian Federation, stated that proposals to legalize stablecoins for international settlements have been formulated. The primary goal is to regulate the transfer, accumulation, and use of these assets for cross-border payments within Russia.
The Ministry of Finance is also evaluating this issue. Experts believe the legalization of stablecoins will not be experimental but a permanent norm. They highlight several advantages of using these assets for cross-border payments:
- Speed and Cost: Stablecoin transfers are much faster and cheaper than traditional banking systems.
- Simplicity: Users do not need to open a bank account or undergo complex registration procedures.
- Security: Blockchain technology protects stablecoins, making them secure and tamper-resistant.
- Accessibility: Anyone with internet access can use cryptocurrencies.
Legalizing stablecoins could open new opportunities for Russia, particularly in resuming trade with countries that have imposed sanctions.
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
The Russian Central Bank has long opposed any cryptoassets. However, external circumstances are gradually forcing the regulator to reconsider its stance.
In March, President Vladimir Putin signed a law authorizing the use of digital financial assets (DFAs) for cross-border settlements. However, implementation has stalled due to secondary sanctions risks and low liquidity of DFAs.
Meanwhile, Russian commodity companies are already using the Tether (USDT) stablecoin for cross-border transactions with China. Although it may take some time for authorities to reach a decision, the current shift stresses out the resilience of cryptocurrencies and their expanding role in global trade.
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