According to official media reports, Russia is considering the use of stablecoins for international payments. A new report by Russia’s official publication “Izvestia” indicates that Russia is seeking to legalize the use of stablecoins for cross-border payments. The report did not specify which type of stablecoins the Russian government is considering.
Alexei Guznov, Deputy Chairman of the Central Bank of Russia, told “Izvestia” that proposals for the legalization of stablecoins have been formulated and discussed since 2023. He mentioned that enhanced regulation might be necessary to protect national interests. As Guznov stated, “The understanding is still forming, and I hope that it will soon become the text of the (bill).”
Alexander Murychev, Executive Vice President of the Russian Union of Industrialists and Entrepreneurs (RSPP), informed “Izvestia” that stablecoins will not only add a significant amount of liquidity to the market but will also thrive as a settlement tool among other BRICS countries. The BRICS nations are an economic alliance between several countries including Brazil, Russia, India, China, and South Africa.
In March 2024, Russian President Vladimir Putin signed a law allowing the use of “Digital Financial Assets” (DFA)—or digital representations of contractual rights that can be exchanged—for international payments. Murychev noted that businesses have encountered difficulties using DFAs due to the risk of secondary sanctions.
However, Natalya Milchakova, Chief Analyst at Freedom Finance Global, told the publication that these companies would not face such issues with stablecoins, as they allow anyone to settle with sanctioned individuals without the fear of secondary sanctions.
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