• 23 July, 2024
News

Central Bank of Russia Greenlights Crypto for External Settlements

The Central Bank of Russia is reportedly considering the use of digital currencies for international settlements, according to a statement by its Chairman, Elvira Nabiullina. Although the government is still opposed to the usage of cryptocurrencies within the country, facilitating it for people outside the country isn’t frowned upon as much; the possibility of such a facility is currently being studied through a pilot program.

Significantly, Nabiullina discussed the potential use of cryptocurrencies in settlements with foreign entities at an event attended by representatives of the New People party. A draft law addressing this topic is currently being prepared, as reported by TASS.

In order to make these kinds of transactions easier, Russia intends to set up specialized organizations that will be in charge of mining cryptocurrencies and transferring them to their international equivalents. These entities are going to be responsible for handling activities involving other digital financial instruments as well. 

The Central Bank is now holding discussions with the government in order to ascertain the institutions that are most suitable for carrying out these transactions. Initially, a state-owned company may be entrusted with the responsibility, with private enterprises potentially gaining the opportunity later.

Russia’s stance on cryptocurrency regulation continues to evolve as it evaluates various aspects of this emerging asset class. Bitcoin and other crypto assets are not recognized as legitimate means of payment inside the nation based on the legislative framework that is currently in place. Additionally, those employed in specific government jobs are not permitted to buy (or hold) any cryptocurrency.

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