In a major legislative move, Russian lawmakers have approved a bill allowing companies to use bitcoin and other cryptocurrencies in international trade, according to a report by technology/russia-launch-international-payments-crypto-before-end-2024-2024-07-30/”>ReturnersThe move is part of Russia's strategy to circumvent Western sanctions imposed following its invasion of Ukraine. The new law, which is expected to come into force in September, aims to address delays in international payments, particularly with key trading partners such as China, India and the United Arab Emirates.
<blockquote class="twitter-tweet”>
BREAKING NEWS: Russian lawmakers approve bill allowing companies to use twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin
— bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1818298579393372561?ref_src=twsrc%5Etfw”>July 30, 2024
Central bank governor Elvira Nabiullina, one of the driving forces behind the law, announced that the first cryptocurrency transactions will take place before the end of the year. The central bank will set up an “experimental” infrastructure for these payments, but further details are still lacking.
“The risks of secondary sanctions have increased,” Nabiullina said. “They make it difficult to pay for imports and this affects a wide range of products.”
The legislation also includes regulations on cryptocurrency mining and the circulation of other digital assets, but maintains a ban on cryptocurrency payments within Russia. The central bank noted that payment delays have led to an 8% drop in Russian imports in the second quarter of 2024.
Despite efforts to adopt trading partners’ currencies and develop an alternative payment system for the BRICS, many transactions still rely on dollars and euros through the SWIFT system, which carries the risk of secondary sanctions. Nabiullina stressed that these sanctions have complicated import payments, stretching out supply chains and increasing costs.
The decision by Russian lawmakers is aimed at mitigating the economic problems posed by sanctions and ensuring the smooth running of international trade operations. The speaker of the lower house of the State Duma, Anatoly Aksakov, reportedly told deputies: “We are making a historic decision in the financial sphere” by approving this law.
<script async src="https://platform.twitter.com/widgets.js” charset=”utf-8″>
