Russia to Initiate Crypto Payments Internationally by Year-End, Central Bank Governor Says

Russia plans to launch international cryptocurrency payments by the end of the year to counter Western sanctions, according to the governor of the Bank of Russia. The central bank is prepared to be flexible and is already discussing the conditions of this initiative with various ministries, agencies, and businesses. In addition, Russia’s State Duma, the lower house of Parliament, has given initial approval to legislation allowing businesses to use cryptocurrencies for international payments.

Russia to Launch International Crypto Payments by Year-End, Says Central Bank Governor

The governor of the Bank of Russia, the country’s central bank, said on Tuesday that Russia plans to begin international cryptocurrency payments by the end of the year. On the same day, Reuters reported that Russia’s State Duma, the lower house of Parliament, gave initial approval to legislation allowing businesses to use cryptocurrencies for international payments. This move comes amid ongoing financial pressure from Western sanctions.

This international cryptocurrency payments initiative aims to counter the difficulties caused by Western sanctions, which have disrupted international transactions with key trading partners. As a result of these sanctions, local banks have become more cautious in dealing with Russian counterparts, leading to significant payment delays.

Nabiullina highlighted that ongoing discussions with various ministries, agencies, and businesses are shaping the experiment’s conditions, with the first payments anticipated by year-end. While cryptocurrencies are currently prohibited for payments within Russia, the new law seeks to change this. Noting the regulator’s willingness “to show flexibility,” Nabiullina stated:

We are already discussing the conditions of the experiment with ministries, agencies, and businesses, and we expect that the first such payments will take place by the end of this year.

The central bank acknowledged that payment delays have become a significant challenge for the Russian economy. Nabiullina pointed out the growing risks of secondary sanctions, which complicate import payments and affect a broad range of goods. She noted that although businesses are adapting, these complications have led to longer supply chains and increased costs. The Russian central bank governor stressed:

The risks of secondary sanctions have grown. They make payments for imports difficult, and that concerns a wide range of goods.