Russia is planning to launch a cryptocurrency trial to facilitate cross-border payments as it seeks ways to navigate around international sanctions.
A Bloomberg report revealed that the Russian government wants to use digital tokens to help companies struggling with payment issues due to the economic restrictions imposed on the country.
Solution for the political sanctions
The trial will utilize the National Payment Card System, the NSPK, a financial network established back in 2014 and entirely owned by the Central Bank of Russia.
The NSPK will be central to this test, with plans to exchange rubles and cryptocurrency through the system.
Sources familiar with the project shared that Russia may employ any existing cryptocurrency during the trial.
If the experiment proves successful, the Moscow Exchange and the St. Petersburg Currency Exchange also might be authorized to create their own crypto platforms.
The NSPK itself was sanctioned by the U.S. Treasury in February 2024.
Not every crypto is equal
Russia’s exploration into crypto-based transactions reflects its quite unexpected new strategy to circumvent economic isolation.
Izvestia disclosed that Russia is also considering legalizing stablecoins for cross-border payments, although specific types of stablecoins haven’t been identified, and as experts highlighted, stablecoins are easily censorable, just like any fiat currency.
After all, this move aligns well with ongoing discussions within the Russian government since 2023 about how to integrate digital currencies into its financial system.
The Deputy Chairman of Russia’s Central Bank, Alexey Guznov confirmed that proposals to legitimize stablecoin use have been in development for some time.
No one saw this coming
This new cryptocurrency initiative follows a legislative shift in Russia, which also surprised the public.
Earlier in August, Reuters reported that Russian lawmakers passed a bill allowing the use of cryptocurrency in international trade, a law set to take effect in September.
But before this, cryptocurrencies were in the grey zone, rather unwanted than liked in the country.
So this legal change is a clear indicator of Russia’s commitment to exploring digital currency as a viable means to mitigate the impact of sanctions.
