By Nathan Ferguson
While the government in Russia is thinking about embracing cryptocurrency for performing payments across the countries the Finance Ministry and the Central Bank of the country have not yet formed a consensus regarding the regulation of crypto. Russia is contemplating adopting cryptocurrency for international payments to assist against the influence of western sanctions.
The Financial Policy Department’s head under the Finance Ministry, Ivan Chebeskov, stated that country’s authorities are actively conversing the concept of crypto utilization in the case of international settlements. As per Chebeskov, permitting crypto to carry out settlements dealing with international trade would assist in minimizing the influence put by the Western Sanctions on Russia by restricting it from accessing the conventional payment mechanisms across the borders.
Crypto regulation in Russia
In the meantime, the regulators within the country are endeavoring a lot to control the crypto market of the country as well as the digital assets’ utilization. It is noteworthy that the Finance Ministry, as well as the Central Bank of Russia, possess different viewpoints on the scenario of bringing regulation to the sector of cryptocurrency. The Central bank suggests the implementation of a straightforward prohibition over the trading of cryptocurrency as well as its mining, asserting the operations that pose a hazard to the financial stability of Russia.
On the contrary, in the words of the Finance Ministry, rules should be specified to differentiate between the gray as well white markets. With the efforts done by the governments to pursue the launch of crypto payments, it is inevitable for both the agencies holding diverse standpoints to initially have a consensus regarding the method for crypto regulation about which the debates have continuously been done for months, however without any fruit.
Russian economy keeps on plummeting during western sanctions
The contemplation of Russia for crypto is witnessed at a point when a continuous decline is occurring in its economy. This is a consequence of western sanctions imposed by the EU and the U.S. on Russia following its invasion of Ukraine.
Though the country expects to confront western sanctions through crypto, the Binance CEO – Changpeng Zhao – mentioned that Russia is not in a position to utilize crypto assets for the evasion of sanctions. As per him, the extreme traceability of crypto is a factor due to which the digital currencies become unsuitable in the case to circumvent the sanctions.