Russia is on the verge of launching trials for cryptocurrency exchanges and token transactions, starting on 1 September 2024, to mitigate the impact of international sanctions on its economy. According to sources cited by Bloomberg, the trials will involve the National Payment Card System, which will be used to facilitate exchanges between Russian rubles and cryptocurrencies. This move follows recent legislation passed by the Russian parliament that legalizes crypto mining and establishes a framework for testing digital tokens for cross-border payments under the central bank’s supervision.
Sanctions Prompt Shift to Crypto
The decision to trial crypto exchanges comes as Russian businesses face mounting difficulties in managing international transactions due to sanctions. Major Russian companies, particularly in the metals sector, have already begun using stablecoins for trade with China, as traditional payment methods have been severely restricted. The use of cryptocurrencies offers a potential solution to the challenges posed by these sanctions, providing an alternative means of conducting international trade.
Plans for Domestic Crypto Exchanges
Reports from mid-August indicate that Russia plans to establish at least two domestic crypto exchanges. One of these may utilize the infrastructure of the St. Petersburg International Mercantile Exchange, while the other could be based in Moscow. However, details about these exchanges remain unclear. The National Payment Card System, which was created by the central bank in 2014 and operates the Mir card system and Russian instant interbank payment services, has been chosen for the trials due to its existing infrastructure and capabilities.
Future Implications
If the trials prove successful, they could pave the way for the launch of cryptocurrency platforms by the Moscow Exchange and the St. Petersburg Currency Exchange as early as next year. The experiment is expected to allow the use of any existing cryptocurrency, potentially providing a significant boost to Russia’s ability to navigate around the constraints of international sanctions.
