Bank of Russia to legalize Crypto cross-border payments?

Sahana Kiran
Source – Unsplash

Russia’s stance on crypto is a definition of a love-hate relationship. Russian President Vladimir Putin went from suggesting that Bitcoin “cannot be dismissed” to banning the use of digital assets as a payment method. In addition to this, almost the entire crypto community revolted against the country for waging a war against Ukraine.

Governments across the globe went on to impose sanctions making it rather difficult for financial flow. While the country turned to cryptocurrencies, the industry turned its back against Kremlin. Now, once again turning over a new leaf, the Bank of Russia announced that it had legalized crypto for cross-border payments.

Earlier today, Deputy Finance Minister Alexei Moiseev revealed that the Bank of Russia and the finance ministry decided to give a green signal for crypto-related cross-bored payments.

Just a week ago, Russian Prime Minister Mikhail Mishustin noted that cryptocurrencies were a “safe alternative” for cross-border payments. It seems like this and the finance ministry’s inclination towards the same could have pushed the central bank of Russia to move forward with its latest decision.

Furthermore, Moiseev pointed out the need for rolling out local crypto services in the region. He added,

“It is necessary to do this in Russia, involving entities supervised by the central bank, which are obliged to comply with Anti-Money Laundering and Know Your Customer requirements.”

In addition to this, he also noted how the central bank’s approach toward crypto has evolved. Moiseev suggested that the planned framework was “too rigid.” Therefore, the legalization of cryptocurrencies in cross-border payments was necessary.

Will Russia choose XRP for its cross-border settlements?

This occurrence was highly unlikely as Garlinghouse had affirmed that RippleNet wouldn’t work with sanctioned banks as well as countries. Brad Garlinghouse, the CEO of Ripple had previously stated,

“RippleNet, for example, has always been – and remains today – committed to NOT working with sanctioned banks or countries that are restricted counterparties. Ripple and our customers support and enforce OFAC laws and KYC/AML.”

XRP has been a popular choice for cross-border settlements. Ripple has been taking over the globe with its ODL services. The entire market is in anticipation of the cryptocurrencies Russia would employ.