The central bank of the Russian Federation is considering using Bitcoin for international payments. However, it has launched a pilot project with private companies. This will allow it to take over from Iran, which already uses Bitcoin and other cryptocurrencies for settlement in international businesses.
First tests of cross-border crypto payments with private companies
The Central Bank of the Russian Federation plans to test Bitcoin and other cryptocurrencies as a means of payment in international trade. At least that’s what Deputy Monetary Chairman Olga Skorobogatova announced Monday, December 19.
We are now planning, as part of the experimental legal regime we are preparing, to try the use of cryptocurrency for international institutions. That is, for foreign economic activity.Excerpt from the Vice President’s statement
However, the Vice President said that she will conduct trials with interested actors only. Unfortunately, we do not have more details.
Could Bitcoin become an international trading currency?
Russia’s government institutions are working on a draft crypto law that could come into effect in January 2023. Indeed, Russia is looking for any way to circumvent sanctions, the options to be explored are: the CBDC, stablecoin and Bitcoin.
The Kremlin still seems to be wavering on the final decision. In June 2022, the Central Bank of the Russian Federation had stated:
The Russian ruble is the only legal tender in Russia. The Russian Central Bank considers the digital ruble (CBDC) as a preferred alternative to private stablecoins.Central Bank of the Russian Federation
In addition, she had advocated a ban on Bitcoin in January. but the Kremlin and the Ministry of Finance rejected her advice.
Deputy Finance Minister Alexey Moiseyev announced in September that Russia is working with other countries in the region on a gold-backed stablecoin.
Despite the disagreement between the Kremlin, the Central Bank and the Ministry of Finance share a common goal: to get rid of the US dollar and the euro. We are waiting for January to see if Russia will join Iran. Recall that Iran has legalized the use of cryptocurrencies in international trade since January 2022. In fact, the country recorded its first official order paid in crypto on December 5.
Coming from a journalism university background, I came across Bitcoin and cryptocurrencies not long ago.
The potential of the Blockchain seduced me and I made it my research topic.