Russia Considers Using Cryptocurrencies for International Settlements

Authorities in Russia are mulling over the possible use of digital currencies for international payments, a high-ranking official from the finance ministry has indicated. If recognized as property, he noted, cryptocurrency can be utilized in barter deals with foreign partners.

Finance Ministry Suggests Russia May Employ Crypto in International Trade

The possibility of using cryptocurrencies in international settlements is under consideration at the Ministry of Finance of Russia since the country’s access to the traditional payment channels is limited, Ivan Chebeskov, director of the ministry’s Financial Policy Department announced, quoted by the Interfax news agency.

Speaking at a forum organized by the ruling United Russia party, Chebeskov revealed that the Minfin is actively discussing the employment of digital currency in barter transactions, if it is recognized as property in the Russian Federation.

The topic deserves attention, the official emphasized, as Russia is restricted in its ability to use the traditional payment infrastructure for settlements in its international economic activity. His comments come as Russian authorities are preparing to adopt a new law “On Digital Currency” that may legalize this type of cross-border payment and other crypto transactions.

Russian Prime Minister Mikhail Mishustin stated earlier that the federal government is considering transitioning to settlements in national currencies with “friendly countries.” Interfax also quotes the Head of the Russian Republic of Buryatia, Alexey Tsydenov, who unveiled that Russia will soon offer Mongolia the option to switch to payments in rubles and tugriks.

Moscow has been dealing with mounting western sanctions over its military intervention in Ukraine that have seriously restricted its access to global finances and has been seeking to replace U.S. dollars and euros in international payments, even before it launched the latest invasion in February.

In mid-April, the President of the Russian Chamber of Commerce Sergey Katyrin suggested using cryptocurrencies in settlements with African nations and in late March, the head of the parliamentary Energy Committee Pavel Zavalny said that Russia may start accepting bitcoin for its gas exports in the future.