Russia is set to begin trials for crypto exchanges on September 1 as a strategy to mitigate the impact of international sanctions, Bloomberg reported Monday, citing sources with knowledge of the matter.

The upcoming trials will focus on facilitating conversion between rubles and cryptos using the National Payment Card System. The system, fully regulated by the Bank of Russia, includes features like interbank settlement and clearing, making it a viable platform for these trials.

The tests aim to provide Russia with an alternative for cross-border transactions, especially in light of difficulties with traditional payment systems. Russian exporters have faced challenges buying foreign supplies and receiving payments due to ongoing Western sanctions.

Success in these trials could provide a powerful alternative to traditional financial systems. Plus, it potentially leads to broader crypto adoption for cross-border transactions.

Digital assets have made headway with the Russian authorities, despite certain restrictions on their use. The developments are driven by the need to find alternative payment methods amidst international sanctions.

There are ongoing discussions in Russia about how to regulate crypto exchanges and integrate crypto into the economy rather than implementing an outright ban.

On August 8, President Vladimir Putin endorsed the creation of a legal framework for cross-border crypto transactions and signed a law permitting crypto mining within the country.

A recent report from a local media outlet revealed that Moscow was considering establishing at least two domestic crypto exchanges to back global trade. The country is eyeing Moscow and St Petersburg for its plan.

Source : Crypto Briefing - Aug 27, 2024