Russia To Test Cross-Border Crypto Payments Amid Sanctions, Prepares Sandbox To Identify Challenges

The Russian Export Center (REC) is considering the use of cryptocurrencies for cross-border transactions to bypass Western sanctions.

The Central Bank of Russia has softened its stance on crypto payments.

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Russia is now considering the use of cryptocurrencies for international payments. A state-run organisation is reportedly working on a sandbox that will help identify challenges when using digital assets for settlements. The development comes days after the Central Bank of Russia took a softer stance on crypto payments, especially when they help facilitate the county’s foreign trade. Russia currently faces a slew of trade sanctions from Western nations owing to its ongoing conflict with neighbouring Ukraine.

The Russian Export Center (REC) is considering the use of cryptocurrencies for cross-border transactions to bypass the current sanctions imposed on it. As reported by Russian news agency TASS, REC is working on the creation of a digital sandbox to let fintech firms process payments based on digital financial instruments on behalf of the country’s exporters and importers.

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REC director Veronika Nikishina said at the St. Petersburg International Economic Forum, “As a development institution that captures all current trends, we are now closely studying the possibility of becoming a digital sandbox to pilot the use of cryptocurrencies in cross-border payments.”

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Nikishina added that REC is closely working with the Central Bank of Russia and the nation’s financial watchdog Rosfinmonitoring on the project. It has already gathered representatives of fintech companies and regulatory bodies as well. Nikishina believes once the sandbox identifies all possible risks in terms of “regulation and technology,” it would allow quicker and safer payments in the future.

As mentioned, the Central Bank of Russia has softened its stance on crypto payments, as it is believed to be a feasible mode of payment in cross-border deals amid all the Western sanctions.