Russia Considers Legalizing Stablecoins for International Transactions
Russia is exploring the legalization of stablecoins for cross-border payments to streamline transactions for its companies.
The Russian Central Bank is reviewing proposals to permit stablecoins tied to gold or the US dollar, potentially enacting this as a permanent regulation rather than a temporary measure. This move is seen as advantageous for transactions with BRICS nations, providing a promising avenue amid economic sanctions.
Deputy Chairman of the Central Bank, Alexey Guznov, highlighted the formulation of proposals aimed at regulating the entire process of importing, storing, and utilizing these assets for global payments. He emphasized the need for robust regulation due to their resemblance to digital financial assets (DFAs) and cryptocurrencies, noting their popularity and versatility.
The Ministry of Finance confirmed ongoing discussions on allowing stablecoins for international settlements. Unlike stablecoins, DFAs in Russia are issued by specific entities and operate within a closed blockchain system, distinguishing them from external market circulation.
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Alexander Murychev, from the Russian Union of Industrialists and Entrepreneurs (RSPP), views stablecoins and DFAs as promising instruments for cross-border settlements, foreseeing increased liquidity and long-term resource formation in the market.
President Vladimir Putin signed a law in March 2024 authorizing the use of digital financial assets for international payments, though implementation is pending. Concerns about secondary sanctions have tempered foreign companies’ enthusiasm, despite the global popularity of stablecoins for payments, which saw transfers totaling $6.8 trillion in the first quarter of 2024.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
