The Russian Ministry of Finance and the Bank of Russia have agreed on a draft law that will allow Russian citizens to conduct cross-border transactions using cryptocurrencies.

About the suggestion

Russian media company Kommersant quoted Alexey Moiseev, Deputy Finance Minister of Russia, speaking at a gathering at the XIX International Banking Forum “Banks of Russia – XXI Century” being held in Kazan, Russia. That event Representatives from various government agencies attended, including the central bank and market regulators.

“Now, in this part, we have already largely agreed a bill in this part with the central bank … It describes in general how you can acquire cryptocurrency, what you can do with it and how you can even use it to settle accounts or not in cross-border settlements ‘ Minister Moiseev.

The draft law will allow Russian citizens to access digital wallets to participate in cross-border transactions.

Russia feels left out

Minister Moiseev has admitted that the increasing adoption of cryptocurrencies around the world contributed to the proposal. He had specified Earlier this month that the central bank’s approach makes infrastructure “too rigid” to coexist with cryptocurrencies.

“Now people are opening crypto wallets outside of the Russian Federation. It is necessary that this can be done in Russia, that this be done by entities overseen by the central bank…” Moiseev added, emphasizing the need for local crypto services so that citizens are not dependent on foreign platforms.

change of posture

Until recently, the general mood in Russia towards cryptocurrencies was rather unfriendly, with calls for a ban from lawmakers and regulators alike.

At the beginning of the year the Bank of Russia called for a ban on the issuance of cryptocurrencies in Russia, as well as their use as investments.

An invoice followed submitted of the Ministry of Finance regarding the regulation of cryptocurrencies, which banned their use as a means of payment in the country.

However, things have improved recently. In June this year, Elvira Nabiullina, the governor of the Central Bank, specified that cryptocurrencies could be used for international settlements as long as they are not traded within the country.

Last month, Russian Prime Minister Mikhail Mishustin expressed how cryptocurrencies could play a role as an alternative means of payment for imports and exports. PM Mishustin stressed the need for intensive development of innovative technologies.

Russian authorities are beginning to realize that cryptocurrency adoption is inevitable. It has become a necessity given the current geopolitical environment, especially after the Ukraine war, which has led to numerous sanctions against Russia.