Russia is said to begin trials of crypto exchanges and token transactions for cross-border payments to mitigate the impact of international sanctions.
Russia appears to be days from starting trials of crypto exchanges and token transactions for cross-border deals in a bid to bypass challenges faced under international sanctions, Bloomberg has learned, citing sources familiar with the matter.
The trials, scheduled to start on Sept. 1, will involve using the National Payment Card System to facilitate the exchange between Russian rubles and cryptocurrencies, the sources say. This initiative follows recent legislation passed by Russia’s parliament that legalizes crypto mining and establishes a framework for testing digital tokens for cross-border payments under the supervision of the central bank.
The move comes as Russian businesses face increasing difficulties in paying foreign suppliers and receiving payments for exports due to sanctions. Some major Russian metal producers have already started using stablecoins for transactions with China, as traditional payment methods have become constrained.
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In mid-August, reports indicated that Russia is planning to establish at least two domestic crypto exchanges, with one possibly utilizing the infrastructure of the St. Petersburg International Mercantile Exchange and the other potentially based in Moscow, though details remain unclear.
The National Payment Card System, created by the central bank in 2014, operates Mir cards and Russian instant interbank payment systems. Officials selected this network for the crypto exchange trials due to its existing infrastructure, which includes interbank settlement and clearing capabilities, the sources said.
If successful, the trials could lead to the launch of crypto platforms by the Moscow Exchange and the St. Petersburg Currency Exchange next year, the sources added. The experiment will allow the use of any existing crypto, according to those familiar with the plans.
Read more: Russia’s central bank set to legalize crypto for qualified investors