- Russia has passed bills to legalize cryptocurrency international payments before September.
- Also included in the bill are energy-related regulations for cryptocurrency mining.
Russia will adopt cryptocurrency as a payment method for international transactions by September.
By the end of this year we could expect to see the first crypto international payment. reported Reuters, citing Russian Central Bank Governor Elvira Nabiullina.
It was assumed that a bill would be passed allowing the use of cryptocurrency in international trade. In response to the passing of the bill, the Duma head said:
“We are taking a historic decision in the financial sphere.”
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Russia is reportedly experiencing payment delays with its key trading partners, including China, India and the UAE.
The report states that a significant portion of the transfers between these trading partners took place through the SWIFT international system. They were therefore under pressure to comply with Western sanctions against Russia.
Despite urging trade partners, such as BRICS, to use their local currencies, the caution of partners and secondary sanctions have caused economic difficulties for Russia.
Elvira Nabiullina noted this has affected imports.
“The risks of secondary sanctions have grown. They make payments for imports difficult, and that concerns a wide range of goods.”
According to Reuters’ report, these delays led to a 8% decrease in Russian imports. This is a significant risk to Russia’s economy.
In this way, the use of cryptocurrency for international payment could mitigate these challenges. This new bill, which paved the path for adoption of cryptocurrency, also included regulations on mining.
The Russian government has set a limit on the amount of energy that can be used by companies who want to mine digital currencies in Russia. reported You can also read about how to get in touch with us. Tass is a Russian media agency.
“Individuals who do not exceed the energy consumption limits set by the Russian government will receive the right to mine digital currencies without being included in the register.”
Russian President Vladimir Putin previously echoed Cryptominers are bound by a strict limit of energy. The President had voiced concerns about cryptocurrency mining leading to energy shortages.
The Russian cryptocurrency market is waiting for the Russian laws to take effect in September. It will also be interesting to see if other Russian partners are willing and ready to accept payments made with international cryptocurrencies.
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Source: ambcrypto.com