- Russia is actively developing regulations aimed at leveraging cryptocurrencies for foreign trade, in line with its goal of mitigating the impact of Western sanctions and reducing its dependence on the US dollar.
- The proposed regulatory changes and the potential introduction of a yuan-pegged stablecoin underscore a collaborative effort among BRICS countries to establish alternative global financial systems.
After Russia legalized cryptocurrency mining in a bid to evade sanctions and overtake the United States as the world’s crypto hub, as discussed in a recent CNF update, Russia is expected to finalize its cryptocurrency regulatory framework by November, according to Anatoly Aksakov, chairman of the State Duma Financial Markets Committee.
The process, which began earlier this year, is a collaboration between the Russian Central Bank and the Finance Ministry. The goal is to establish clear regulations and bylaws to govern the use of cryptocurrencies in foreign trade and foreign exchange transactions under an experimental legal regime that came into force earlier this month.
A recent report from Chainalysis on Russia’s pro-crypto initiatives explains:
These recent cryptocurrency legislative efforts are part of Russia’s broader efforts to develop alternative payment mechanisms to ease the pressure of Western sanctions while decreasing reliance on the U.S. dollar, which is a long-term goal for Russia, especially amid rising geopolitical tensions.
Phased deployment and main participants
In addition, the initial phase will involve selected credit institutions and banks to help “test” the system, with plans to gradually expand the number of participants. Russia wants to regulate cryptocurrencies without allowing them to completely replace the ruble, limiting their use to foreign trade activities.
The move is part of broader goals by the BRICS group, a bloc that includes Russia and other major economies, as it continues its efforts to reduce reliance on the U.S. dollar in cross-border transactions. Russia has even hinted at creating a BRICS stablecoin pegged to the yuan to further support de-dollarization efforts.
As reported by CNF, in the context of BRICS de-dollarization, Bitcoin and XRP are key alternatives for the 159 participants adopting the new payment system. At the time of writing, Ripple (XRP) is trading at $0.5697having decreased by 3.02% over the last day and has increased by 7.09% last week.
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