A senior official from the Central Bank of Russia has revealed that the bank is open to allowing cryptocurrency use for cross-border payments.
CBR is open to accepting cross-border crypto payments
In contrast to its usual attitude towards the crypto industry, CBR has decided to consider using digital assets for international payments, showing a potential relaxation of its tough stance.
According to a report by Reuters, CBR’s First Deputy Governor, Ksenia Yudaeva, said that the bank does not object to the use of cryptocurrency in international transactions. However, she reiterated that being a regulatory authority, the central bank continues to see the mass crypto adoption in Russia as a financial threat. She went on to add:
“We still believe that the active use of cryptocurrency within the country, especially within Russia’s financial infrastructure, creates great risks for citizens and users. We believe that in our country, those risks could be reasonably large.”
According to Yudaeva, the threats to Russian financial stability due to Western sanctions imposed on Russian lenders have decreased because banks now have enough foreign currency liquidity.
Notably, the finance ministry said last week that allowing cryptocurrency to be used to settle international payments would help Russia counter the impact of Western sanctions. The world imposed these sanctions and cut several Russian banks off from the global financial network due to the Russia-Ukraine dispute.
Russia witnesses a progressive shift
The CBR has long been in opposition to the crypto market. As recently as January, it advocated a total ban on domestic crypto trading and mining, citing potential “financial stability risks” associated with the sector. Following the ongoing conflict with Ukraine, CBR admitted last month that it had taken an overly complex stance against bitcoin, potentially impeding the sector’s growth.
Months of discussions have gone on, but no agreement has been achieved among various government departments and parliamentarians.
Denis Manturov, the Russian Federation’s Minister of Industry and Trade, reportedly stated that Russia would eventually legalize crypto payments in the region.
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