The advent of stablecoins? Russia is reportedly considering using these fiat-based cryptocurrencies to dodge sanctions and trade with its allies. A closer look at Moscow's ambitions in terms of digital assets.
Russia could use stablecoins for trade with BRICS+
Deputy Chairman of the Central Bank of the Russian Federation Alexei Guznov confirmed the information to local media outlet Izvestia. Stablecoins could be regulated by law, and thus be used for international exchanges. As a reminder, significant economic sanctions have weighed on Russia since its invasion of Ukraine in February 2022. Furthermore, Many of its BRICS+ allies are also under sanctions.
For Alexei Guznov, this is a broad regulatory framework:
“The question is to regulate the entire ecosystem, which would allow individuals to transfer these assets to the territory of the Russian Federation. […] and use them for cross-border payments. »
Access to the dollar has become difficult in Russia, while it was de facto the international currency of exchange. Hence a process of “de-dollarization” initiated by Moscow, which is also found in other countries.
👉 Our complete guide to go further – Stablecoin, everything you need to know about this type of cryptocurrency
The Central Bank of Russia is considering making it a “permanent standard »and not just an experimentThis would mean that Russia would rely on blockchain and digital assets for a significant part of its cross-border payments, unlike the “classic” banking system used until now.
Already, the Russian Duma, that is, the equivalent of Parliament, has drafted a bill on this subject, which has been under discussion for more than a year in Russia. For now, the digital financial assets used by Russia are limited to the territory. The challenge is therefore to make it a more open system.with the risks that this entails for Moscow.
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According to Oleg Ogienko of BitRiver, The system developed so far is closed, but that could change :
“Russian digital assets are not […] technologically connected to the global cryptocurrency market. They are difficult to use for cross-border payments due to their inconvertibility and low liquidity.
This is a major challenge for Russia. According to data shared by Alexander Potavin of Finam Financial Group, Stablecoins accounted for $6.8 trillion in transfers in the first quarteran amount equivalent to Russian revenues for the whole of 2022.
🌐 Read on the same subject – The Central Bank of Russia reveals that $51 billion in cryptocurrencies were exchanged by Russians in 2023
So it is likely that Russia will soon legislate on stablecoins.. Already, Russians have rushed to cryptocurrency exchange platforms, and Vladimir Putin is said to have ambitions regarding mining. The future could therefore rhyme with blockchain in Russia.
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Source: Izvestia
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A journalist at Cryptoast since 2017, I am passionate about the issues of decentralization, privacy and regulation. I specialize in traditional economics and finance, analyzing how news from this sector influences the cryptocurrency sector, offering a unique and informed perspective to Cryptoast readers.
Marine Debelloir
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