Russia disregards sanctions, uses crypto for cross-border payments

Russia is among the countries that have begun paying attention to the potential of blockchain technology, going further to experiment with what it can do. This comes at a time when the United States considers crypto to be a huge threat.

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Russia leverages crypto for cross-border transactions

The news comes after a recent conference where Alex Moiseev, Deputy Finance Minister, noted that while crypto is an "evil" in general, other instances exist where it can be put to effective use. Specifically, Moiseev highlighted crypto's potential to facilitate foreign trade activities, adding that there was a relevant bill in the making where the State Duma Committee on the Financial Market would consider its place in modern-day multinational trade.

Approval of the bill will see a committee, including representatives from a wide range of ministries, the Bank of Russia, and law enforcement agencies, permit individual operators to use crypto in foreign trade transactions. Such a move would help establish a legal structure for the testing phase.

Noteworthy, the process of providing a legislative structure for such an experience could be delayed until the end of 2023, with Moiseev noting that the move represents a significant step for Russia in using crypto to bypass sanctions and conduct cross-border transactions.

Sanctions gain popularity as a pressure weapon  against political adversaries

Sanctions have become an increasingly common tool over the years as countries use them to exert pressure against their political rivals. These measures have had a significant implication for Russia, with several rounds of economic sanctions targeting it in retaliation for its actions invading Ukraine. Nevertheless, even in the face of these challenges, Russia is now looking to use crypto in an effort to bypass the restrictions so that they can conduct cross-border transactions.

Prior to the news, The Russian News Agency (TASS), the Bank of Russia, and the Ministry of Finance in Russia had acknowledged during a February cite that following the international sanctions imposed against the country, Russia was excluded from global payment infrastructure reliant on the US dollar (USD). However, the company's current stand is that cryptocurrency payments cannot be eliminated.

Russia's potential crypto adoption for international transactions could indicate a significant step forward for the industry. Despite there being considerable risks and challenges around such transactions, the potential benefits are significant enough, making them a viable option for countries looking to bypass sanctions, perform other types of international trade, or keep up with Russia in adopting more contemporary technologies.