According to a report from Retuers. The Russian government is using this development to avoid the Western sanctions that were imposed after the invasion of Ukraine. This new law is expected to come into effect by September and aims to reduce delays with international payments.
JUST IN: 🇷🇺 Russian law makers passes bill allowing businesses to use #Bitcoin and cryptocurrencies in international trade — Reuters pic.twitter.com/yFExWcIG9k
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Elvira Nibullina, the central bank governor and a strong supporter of the new law, said that first cryptocurrency exchanges will take place before the end of 2018. Central bank to establish an “experimental” Further details on the infrastructure of these payments are still pending.
“The risks of secondary sanctions have grown,” Nabiullina said. “They make payments for imports difficult, and that concerns a wide range of goods.”
This legislation includes rules on cryptocurrency mining, the distribution of digital assets and other forms of currency. However, the payment ban for cryptocurrency within Russia remains in place. Central bank officials noted that delays in payment have led to a drop of 8% in Russian exports for the second quarter in 2024.
Despite the efforts made to move to currencies used by trading partners, and create an alternative BRICS-based payment system, several transactions still rely heavily on USD and EUR via SWIFT. This puts them at risk of secondary sanctions. Nabiullina said that sanctions like these have increased import costs, extended supply chain and complicated payment methods.
The Russian legislators’ decision aims at reducing the impact of sanctions on international trade and ensuring smoother operations. Anatoly Acsakov is the leader of the lower chamber of the Duma. He reportedly said to lawmakers: “We are taking a historic decision in the financial sphere” By passing this legislation.Â
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Source: bitcoinmagazine.com