Russia’s Central Bank Makes U Turn about Crypto Usage in International Payments

As a change of tune, Russia’s central bank is relieving its previous tough stance about cryptocurrencies by allowing their usage in international payments, as reported by Reuters.

The First Deputy Governor of the Central Bank of Russia (CBR), Ksenia Yudaeva, noted:

“In principle, we do not object to the use of cryptocurrency in international transactions.”

Despite Yudaeva reiterating that the central bank still saw the wider usage of crypto in the nation as a financial threat, the latest revelation shows restrictions are being eased. 

He pointed out:

“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.”

This announcement comes days after the nation’s finance ministry hinted that permitting cryptocurrency in international payments would assist the nation in countering Western sanctions based on its invasion of Ukraine. 

“The idea of using digital currencies in transactions for international settlements is being actively discussed," Ivan Chebeskov, the head of the finance ministry’s financial policy department said.

The nation’s central bank had previously indicated that crypto transactions were unwelcome on Russian soil because it deemed them criminal. 

Earlier this year, the CBR went on the offensive by calling for a blanket ban on crypto-related activities, despite objections from various entities like the finance ministry. The ministry had argued that the blanket ban would violate the interest of citizens and consumers of crypto services. 

Therefore, the back and forth witnessed suggests that Russian officials are delving deeper into how to regulate the nation’s crypto market and digital currency usage.