From 2023, Russia will use cryptocurrency to circumvent sanctions

Russian Prime Minister Mikhail Mishustin has instructed the Ministry of Finance, the Central Bank, the FSB and a number of other agencies of the occupying country to agree on draft laws to regulate the issuance and circulation of digital currency, as well as their use in international settlements by December 19. The government also ordered the Ministry of Finance to develop ideas for the use of digital assets, including decentralized technologies.

Meanwhile, Ivan Chebeskov, Director of the Financial Stability Department of the Ministry of Finance, said that the use of cryptocurrencies for international transfers could start as early as next year. The system of taxation of international transactions is currently under development.

It is worth noting that Russian politicians have previously opposed the idea of using cryptocurrencies as a payment method. In 2020, Russia adopted the cryptocurrency law «On Digital Financial Assets,» which officially banned the use of bitcoin for payment purposes. Obviously, the situation began to change due to Western economic sanctions after the start of Russia’s full-scale aggression against Ukraine.

In mid-August, the country sponsoring terrorism announced its intention to create a digital ruble. The central bank expects the asset to increase the availability of financial services and optimize cross-border payments. After the country banned the SWIFT payment system, the Bank of Russia announced that it would not object to the use of cryptocurrency in international payments.