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Russia To Permit Use of Crypto for Global Payments Amid Western Sanctions: Report

August 01, 2024

Russian lawmakers have reportedly passed a bill that will enable the nation to use cryptocurrency in international trade.

Reuters reports that the law is expected to take effect in September.

Russian Central Bank Governor Elvira Nabiullina says the first crypto transactions will likely happen within the year.

The law will only allow businesses to use crypto in international trade but the ban on cryptocurrency payments inside Russia still stands.

Russia is facing Western sanctions for its invasion of Ukraine and banks in countries it is trading with are cautious amid threats of secondary sanctions, causing payment delays.

Nabiullina says the delays lead to longer supply chains and increased costs. The situation is already hurting the Russian economy. In the second quarter of 2024, the nation’s imports were down by 8%.

“The risks of secondary sanctions have grown. They make payments for imports difficult, and that concerns a wide range of goods.”

Many international payments still use the dollar and euro and go through the international SWIFT system.

In June, Russian President Vladimir Putin said that BRICS, the intergovernmental organization consisting of Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia and the United Arab Emirates, is working on a fully digital payment system that is independent of the US dollar.

“Within BRICS, we’re working on shaping an independent payment system, free from political pressure, abuse and external sanctional interference.”

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