Crypto News: Russia Weighs Crypto For International Payments Amid Sanctions

Crypto News – The Russian Federation is allegedly considering accepting crypto for international payments in response to Western sanctions imposed after Russia’s full-scale invasion of Ukraine earlier this year,

iexclusivenews reports that Ivan Chebeskov, the head of Russia’s Finance Ministry’s Financial Policy Division. Is actively studying the potential of introducing crypto payments, according to the Moscow-based Interfax news agency and Reuters.

“The idea of using digital currencies in transactions for international settlements is being actively discussed,” he said.

This online news out understands that according to local newspaper Vedomosti. The Finance Ministry is considering adding the proposal on international payments to an updated version of a crypto law that’s still under construction.

The Finance Ministry is considering including the suggestion on overseas payments in an amended version of a crypto law that is still in the works, according to local newspaper Vedomosti.

The Russian administration looks to be united in its support for cryptocurrency legalization. Moscow intends to legalize cryptocurrency payments, according to trade minister Denis Manturov.

“Sooner rather than later.” In April, the country’s Finance Ministry supported legalization in a bill titled “On Digital Currency.”

In the same month, the Bank of Russia’s governor revealed that the central bank was reviewing its anti-digital asset stance.

Cryptocurrency is being evaluated as one of various strategies to reduce the impact of Western sanctions on the Russian economy, according to Central Bank Governor Elvira Nabiullina.

However, iexclusivenews Nigeria reports that given that the crypto market is neither large or liquid enough to satisfy a sovereign nation’s transaction demands.

It’s unclear how Russia would be able to employ digital assets to circumvent Western sanctions. To begin with, the US Office of Foreign Assets Control (OFAC) has prohibited any American from doing business with individuals or businesses on its Specially Designated Nationals and Blocked Persons (SDN) List. Regardless of the payment channels in place, conducting business with Russian SDNs is prohibited.

Jake Chervinsky, the head of policy at the Blockchain Association in the United States, explained:

“There’s no reason to believe that the existence of cryptocurrency will persuade any of them to wilfully break sanctions laws, incurring fines and jail time.”