Russia Eyes Legalizing Stablecoin Payments For Global Trade

Juhi Mirza
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Source: / istock

Russia is currently mulling over legalizing stablecoins pegged to either the US dollar or gold to conduct international payments. Per Izvestia, a local Russian outlet, Putin’s administration is currently conducting open discussions on the said development, with proposals ready to escalate the talk to the next level.

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Russia Wants to Legalize Stablecoin Payments

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According to Izvestia, Russia is currently contemplating legalizing stablecoin for global trade and international payments. Deputy chairman of the central bank, Alexey Guznov has already confirmed the aforementioned development.

Elaborating more on details, Guznov shared that the real question would be how to regulate the entire chain of transactions in an effective manner. The plan of action entails allowing individuals to transfer these assets to the Russian Federation, accumulate those assets there, and later use them for global trade. Guznov further outlined that the particular idea is currently being considered for conducting trade proceedings with the BRICS nations.

At the same time, Izvestia shared how Guznov is pondering legalizing stablecoins as a permanent solution to the nation’s trade woes. The deputy chairman clarified that if stablecoin adoption is legalized, it will be done as a permanent solution and will not be considered merely an experiment.

“We are talking about tokens issued in foreign information systems. In some parameters, stablecoins may resemble digital financial assets (DFA). In others, they are cryptocurrencies, so it will be necessary to tighten the regulation. Understanding is still being formed. And I hope that shortly it will be reflected in the text [of the bill]. Concluded Alexey Guznov.

How Can Stablecoins Help Russia in Global Trade Proceedings?

Stablecoins pegged to gold and the US dollar are currently being considered vital instruments for cross-border payments by Russia. Speaking more about the matter, Alexander Murychev, executive vice president of the Russian Union of Industrialists and Entrepreneurs, shared how important these assets can truly be. Murychev noted that if these instruments are approved, they will float a large volume of liquidity in the market. Which in turn, can enable the formation of a “long-term resource.”

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Another analyst quoted by Izvestia, Natalia Milchakova, shared how transactions with stablecoins are not regulated. Per the expert, such transactions can be used for payments and settlements with individuals under sanctions by any state. In conclusion, Milchakova stated how these payments, if approved, may help Russia evade sanctions imposed on it by the US. However, in her opinion, she emphasized using stablecoins not pegged to the US dollar or Euro to avoid further confusion.