Russia Developing Sandbox for Cross-border Crypto Payments
An institute facilitating Russian exports is now working on the establishment of a sandbox for international crypto payments, local media reported. The goal is to identify potential regulatory and technological challenges for settlements with digital assets. Russia Prepares to Test Crypto Payments for Exports in Dedicated Sandbox
The Russian Export Center (REC), which is a state-run institute tasked to support Russia’s exports, is now considering the employment of digital currencies as an alternative approach to international settlements under sanctions.
The organization believes that setting up a “cross-border digital sandbox” is a promising initiative. The project will aim to create opportunities for fintech companies to process payments using digital financial instruments on behalf of Russian exporters and importers.
Settlements in cryptocurrencies represent an alternative payment system, which will develop incredibly quickly now, according to Veronika Nikishina who heads the REC. Speaking at the St. Petersburg International Economic Forum, she elaborated: As a development institution that captures all current trends, we are now closely studying the possibility of becoming a digital sandbox to pilot the use of cryptocurrencies in cross-border payments.
Quoted by Tass, Nikishina added that the institute has already gathered representatives of fintech firms and regulatory bodies and is closely collaborating with the Central Bank of Russia as well as with the country’s financial watchdog, Rosfinmonitoring. Without these participants, it would be impossible to create all layers of crypto payments, the official noted.
The REC director emphasized the importance of building a sandbox “in order to identify all possible risks in terms of regulation and technology.” Veronika Nikishina believes this would allow making such payments quickly and safely in the future.
The initiative comes after Bank of Russia, a firm opponent to the legalization of cryptocurrencies in the country, softened its stance on crypto payments in foreign trade deals, amid mounting Western restrictions on Russia’s finances imposed over its military invasion of Ukraine.
Most Russian institutions agree that the ruble should remain the only legal tender inside Russia as authorities prepare to adopt comprehensive crypto regulations. Earlier this week, members of the State Duma, the lower house of parliament, approved a draft law banning the use of cryptocurrency as a means of payment but left the door open for exceptions envisaged in other federal laws. Tags in this story Crypto, crypto assets, crypto payments, Cryptocurrencies, Cryptocurrency, Digital Assets, Digital Currency, Institute, Payments, REC, restrictions, Russia, russian, Sanctions, sandbox, Settlements, tests, trials, Ukraine, War
Do you think Russia will start using cryptocurrencies for international settlements? 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. Report: Three Arrows Capital Liquidated for Millions, Sources Say Crypto Hedge Fund May Face Insolvency NEWS | 5 hours ago Tron"s USDD Remains Below the $1 Parity for 24 Hours, Token Hits a Low at $0.95 per Unit NEWS | 7 hours ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleUS Central Bank Hikes Benchmark Rate by 75 bps, Fed’s Largest Increase Since 1994 Next articleGAIMIN Launches the World’s First Interoperable, Cross-Game, Utility NFT – GAIMIN’s NFTxg Show comments More Popular NewsIn Case You Missed ItDraft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament
A bill updating Russia’s tax law to incorporate provisions pertaining to cryptocurrencies has been filed with the State Duma, the lower house of parliament. The legislation is tailored to regulate the taxation of sales and profits in the country’s market ... read more.Today"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether