By
Godfrey Benjamin
April 24th, 2024
There are speculations about what cryptocurrency Russia will use for cross-border payments.
The Deputy Minister of Finance, Aleksey Moiseev, has stated that the Ministry of Finance and Central Bank are considering a change in stance on the use of crypto for cross-border payments.
Moiseev made this claim while speaking with the Russia-24 TV channel. According to him, current geopolitical conditions make the use of crypto for cross-border payments inevitable.
Hitherto, the Kremlin has had a tenuous relationship with cryptocurrencies to keep the Russian ruble as the only legal tender in the country. After banning crypto payments in January 2021, the Central bank proposed banning crypto mining in January.
President Putin also said in October 2021 that it was too early to use crypto for energy payments. Also, another bill prohibiting the use of digital financial assets passed the first reading in June 2022.
However, Russia’s stance towards cryptocurrencies appears to have softened generally in recent times. There are claims this may be due to the sanctions imposed on the Russian Federation after it invaded Ukraine.
Russia to Legalize Crypto for Cross-border Payments
In May, a former deputy governor of the Russian apex bank Ksenia Yudaeva stated the bank was open to using cryptocurrency for international payments. Mr. Moiseev, in his interview, further admitted that the Bank of Russia is looking to legalize the use of crypto shortly.
He noted that the initial infrastructure planned for cryptocurrencies was too rigid for cross-border payments. Further, Moiseev pointed out that Russian citizens already maintained crypto wallets and that it was necessary to provide similar services locally.
In this way, local entities that offer crypto services will be supervised by the Central Bank to ensure compliance. Such entities must adhere to local anti-money laundering legislation and ensure KYC is in place.
“On the one hand, give people the opportunity to do it. On the other hand, put it under control so that there is no laundering, paying for drugs, and so on,” Moiseev said.
Will Russia Use XRP?
Meanwhile, there are speculations about what cryptocurrency Russia will use for cross-border payments. In many instances, XRP is often the asset of choice. This is not surprising given its capabilities as a bridge asset between two currency pairs. However, Ripple limits the usage of XRP by sanctioned companies and countries.
Will Russia use XRP? Will XRP allow its usage? The entire market anticipates the answers.