Russia is Open to Bitcoin, Crypto for International Payments

A senior official of the Central Bank of the Russian Federation has said that he is open to using bitcoin and other cryptocurrencies for international payments.

  • The Central Bank of Russia is willing to allow the use of bitcoin and other cryptocurrencies for international payments.
  • A senior bank official said it still believed the risk to Russia could be “reasonably large”.
  • Russia has seen a lot of turmoil over the issue of bitcoin and mining over the past year.

The Central Bank of the Russian Federation is willing to allow the use of bitcoin and other cryptocurrencies for international payments, according to a report by Reuters.

“In principle, we do not oppose the use of cryptocurrency in international transactions,” said the first deputy governor of the central bank, Ksenia Yudaeva.

However, the open-mindedness of the financial authority does not go further.

Yudaeva went on to explain, “We still believe that the active use of cryptocurrency in the country, especially within the Russian financial infrastructure, creates great risks for citizens and users. We believe that in our country, these risks could be reasonably significant.

The continued Russian debate not only over the use of currencies like bitcoin, but also the bitcoin mining process has become a hot topic over the past year. Last January, the central bank proposed a blanket ban on bitcoin mining.

The Russian president took the opposite position of the central bank saying “Although, of course, we also have certain competitive advantages here, especially in the so-called mining”, referring to the country’s natural climate and surpluses energy.

The Russian government has proposed a bill to regulate bitcoin and other cryptocurrencies. At the time, Andrey Lugovoy, First Deputy Chairman of the Committee on Security and Anti-Corruption of the State Duma, the federal assembly of the Russian Federation, said:

“When we talk about digital financial assets, cryptocurrency, crypto market, we have to understand that we are not just trying to amend some bills, we are trying to regulate a new entity to which the world whole is confronted, and we must determine our position.”

Russia’s Finance Ministry has followed up the government’s proposal with its own bill to respect the Bitcoin ecosystem and hold companies operating in the space accountable by assigning regulatory practices. Now, some in the Russian Federation think bitcoin is only a matter of time.

Denis Manturov, Minister of Industry and Trade of the Russian Federation, gave his opinion on May 18:

“The question is when will it happen, how will it happen and how will it be regulated. Now the Central Bank and the government are actively engaged in it.

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