Russia is going to use crypto for international trade

In early 2022, Russia was not exactly a fan of cryptocurrencies, even considering a complete ban on the asset class. But after Western countries with harsh sanctions against Russia the country came up with the idea of ​​using crypto for international trade. This plan is now being continued.

Paying with crypto soon possible?

That writes the Russian newspaper BAG. Bank of Russia, the country’s central bank, now allows businesses to trade by paying with crypto. “We came to the conclusion that cryptocurrencies should not be used for payments domestically. And for foreign payments, it is still an experiment, but measures are already being taken to make it legal,” said Elvira Nabiullina, the head of the central bank.

Companies connected to the Russian state are now allowed to handle payments with crypto. Vice-President Alexei Guznov stated that private companies may also receive permission in the future.

In July of 2022, Putin made it illegal to pay with crypto within Russia. With this, the country hoped to prevent the Russian ruble from being circumvented within Russia, which could have further reduced confidence in the ruble.

Crypto mining in Russia increasingly important

Crypto mining is also increasingly in the foreground in Russia. For example, the Russian state is investing directly in the sector and is considering expanding energy production in order to increase mining capacity. That capacity has now even grown so fast in Russia that it is in second place worldwide. Only in the United States is the total capacity larger than in Russia.

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According to the TASS report, mining comes in handy as the mined coins can be used in international transactions. This would be a convenient way to circumvent sanctions imposed by the west. North Korea also uses this tactic, but to launder money.

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