Is Russia going to use crypto for international payments?

Since Russia invaded neighboring Ukraine, the Russian government suddenly seems to be quite supportive of the world of crypto. At the moment, the Kremlin even seems to be looking at using cryptocurrency in international payments. This, of course, has everything to do with bypassing Western sanctions

Russia seizes crypto

Reuters reported yesterday that a senior official at the Russian Ministry of Finance, Ivan Chebeskov, has indicated that cryptocurrencies for international payments are actively being looked into. The local news station, vedemostiareports that the Ministry is considering introducing a bill for the use of crypto in international payments.

“The idea of ​​using digital currencies in international settlement transactions is being actively discussed.”

According to Chebeskov. Where previously the crypto industry was viewed with suspicion by the Kremlin, this sentiment seems to have completely turned around in a short time. Meanwhile, support for crypto adoption in Russia is growing strongly. Even the hostile point of view of the Russian central bank seems to be a thing of the past.

The reason for this sharp change in the attitude of the Russian government towards the crypto sector has of course everything to do with the heavy sanctions that the West imposed on Russia following the invasion. However, it is not clear exactly how the use of crypto should circumvent these sanctions.

Bypassing sanctions with crypto?

The use of crypto to do transactions with Western parties means that certain actors in the West also willfully have to break the rules that have been drawn up in sanction packages. Those who do this run the risk of being sued by the relevant authorities. Think, for example, of crypto exchanges in Europe and the United States.

For that reason, the chance is considered small that Russia will actually be able to get out of Western sanctions by using crypto payments. Western companies and other organizations will most likely continue to adhere to the rules.

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