Russian Chamber of Commerce Suggests Using Cryptocurrencies in Settlements With Africa
Employing crypto in cross-border payments is one of the proposals put forward by the Russian Chamber Of Commerce lobbying for more cooperation with African countries. Amid unprecedented sanctions limiting Russia’s ability to trade internationally, the head of the board has urged the government to work out an alternative system for settlements with Moscow’s partners. Chamber of Commerce Proposes Improving Russia’s Trade With African Nations
In a letter sent to Russian Prime Minister Mikhail Mishustin, President of the Chamber of Commerce and Industry of Russia Sergey Katyrin has laid out a set of proposals to boost economic relations with African nations. Among other ideas, the head of the Russian board of trade advocates for alternative payment options. Quoted by Tass, Katyrin insists: It seems appropriate to instruct the Ministry of Finance, together with the central bank, to ensure the conclusion of intergovernmental agreements with African states on the use of national currencies and cryptocurrencies in mutual settlements and payments.
The official is calling on the federal government to create a new export-import bank and a trust fund tasked to back export activities of small and medium-sized firms to Africa. He also wants the Ministry of Industry and Trade and the Ministry of Economic Development to establish trade missions and free trade zones in the African countries with the greatest potential to expand ties.
Katyrin is urging the two departments to work out a new settlement mechanism for external and internal payments, including cryptocurrencies. The system can be implemented in settlements for concessions for natural resources, investment projects, export operations, and other payments. He also suggests the establishment of a Russia-Africa Trading House.
The head of the chamber emphasizes that the development of this kind of cooperation with “friendly areas” is of paramount importance for the Russian Federation. His proposals come as mounting western sections imposed over the war in Ukraine continue to limit Moscow’s access to global finances and its currency reserves in foreign banks.
The restrictions are convincing Russian officials that crypto assets can help the country to return to global markets and substitute the U.S. dollar and the euro with other national and digital currencies. While the Bank of Russia is skeptical about using cryptocurrencies to circumvent sanctions, the Finance Ministry is leading efforts to legalize them and says that the penalties motivate Russia to create its own crypto market infrastructure. Tags in this story Africa, african, board of trade, chamber of commerce, Crypto, crypto assets, Cryptocurrencies, Cryptocurrency, international trade, Payments, proposal, Proposals, restrictions, Russia, russian, Sanctions, Settlements, trade, Ukraine, War
Do you think Russia will employ cryptocurrencies in international settlements with trading partners? Share your expectations in the comments section below. Lubomir Tassev
Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Tesla"s Elon Musk Offers to Buy Twitter for $41 Billion, Says He Wants to Make It a Private Company NEWS | 10 hours ago Vitalik Buterin Becomes Citizen of Crypto-Friendly Montenegro NEWS | 11 hours ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleECB to Cease Bond Purchases in Q3, Lagarde Says EU’s Economic Rebound ‘Crucially Depends on How the Conflict Evolves’ Next articleJapan’s Top Messaging App LINE Launches Marketplace With 40,000 NFTs Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItPolygon Announces Zero-Knowledge Identity Platform for Web3
On March 29, Polygon, the layer two (L2) scaling solution that runs parallel with the Ethereum blockchain, has announced a new identity platform called Polygon ID. While the protocol is is still under development, Polygon ID is powered by zero-knowledge ... read more.NFT Marketplace Opensea to Add Credit Card, Apple Pay Support via Moonpay Leading NFT Marketplace Opensea to Add Solana Support in April US Senator Cruz Introduces Bill to Prevent Federal Reserve From Using Digital Currency as Surveillance Tool Sanctions Motivate Russia to Create Own Crypto Market Infrastructure, Finance Ministry Says