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Cryptocurrency Legalization in Russia Approaches: Central Bank Changes Course
8h53 ▪ 3 min read ▪ by Fenelon L.
The Central Bank of Russia is now encouraging the use of cryptocurrencies in international transactions. This surprising move is aimed at bypassing economic sanctions imposed by the West following the conflict in Ukraine.
Cryptocurrencies, an unexpected economic weapon for Russia
Faced with financial isolation imposed by the West, Moscow is innovating. Elvira Nabiullina, governor of the Central Bank of Russia, has announced a loosening of the institution’s stance on use of encryption in international payments.
“New financial technologies create opportunities for schemes that did not exist before. That is why we have relaxed our stance on the use of cryptocurrencies in international payments,” he said. declared during a conference in St. Petersburg.
This decision is part of a broader strategy to circumvent sanctions. Russian companies are encouraged to explore alternative payment solutionsincluding digital assets. This strategy aims to maintain trade flows with key partners such as China, India or the United Arab Emirates.
According to Nabiullina, “Companies have become very flexible, very enterprising. They find ways to solve this problem and often they don’t even share them with us.”
Towards a new global financial system?
The Russian initiative could catalyze the creation of a parallel financial system. BRICS countriesof which Russia is a member, are already working on the “BRICS Bridge”, a multilateral platform for digital payments and settlements. This project aims to reduce dependence on the dollar-dominated Western financial system.
However, Nabiullina tempers expectations, stressing that developing such a system “will take time.”
The recent expansion of the BRICS to ten countries, which now include Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates, could accelerate this process, creating an economic bloc capable of challenging the West. financial hegemony.
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Fenelon L.
Passionate about Bitcoin, I like to explore the intricacies of blockchain and cryptocurrencies and share them with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I have understood that Bitcoin is the tool that can make this possible.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Do your own research before making any investment decisions.