The Central Bank of Russia is not a big fan of cryptocurrencies, as earlier this year, the institution had advocated for a blanket ban on cryptocurrencies. However, with the hefty sanctions levied against the country by Western countries, the institution could be running out of options in facilitating international trade.
A senior official from the Bank of Russia has revealed that the institution was open to using cryptocurrencies to facilitate international trade.
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Bank of Russia supports crypto in international payments
On May 31, the First Deputy Governor of the Bank of Russia, Ksenia Yudaeva, said that the country did not “object to the use of cryptocurrency in international transactions.” However, like other central banks worldwide, the institution was opposed to Russian citizens engaging in cryptocurrencies because they threatened the financial sector.
The use of crypto has been primarily opposed by central banks. Cryptocurrency transactions can be done without using third parties, and these transactions cannot be controlled by central banks, which is why the institutions have been against the sector.
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Moreover, central banks have been more focused on developing and promoting central bank digital currencies (CBDCs). CBDC projects have been under development in many countries. CBDCs are digital currencies issued and controlled by central banks.
According to Yudaeva, the use of cryptocurrencies by citizens posed a great risk to the country. The official also added that the risks caused by crypto activities could be especially large for the country, given that the economy has already been disrupted by sanctions.
“We still believe that the active use of cryptocurrency within the country, especially within Russia’s financial infrastructure, creates great risks for citizens and users. We believe that in our country, those risks could be reasonably large,” Yudaeva added.
Yudaeva further added that the risks to financial stability posed by the sanctions imposed against Russia had dropped significantly. Banks in the country now had enough liquidity in foreign currency.
Possible use of crypto in Russia
Cryptocurrency usage in Russia has increased significantly over the past year. During the onset of the invasion of Ukraine, crypto trading volumes spiked significantly, but they later dropped.
Last week, the finance ministry said that the government was actively discussing the use of cryptocurrencies for transactions. The Minister for Industry and Trade in Russia, Denis Manturov, said that the country could eventually legalize the use of cryptocurrencies for payments.
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