The Bank of Russia permits the crypto for cross-border payments but not for domestic transactions

Elvira Nabiullina, the governor of Russia’s central bank, is the latest official to confirm that the country is warming up to cryptocurrency payments but not domestic payments. Nabiulina said that cryptocurrencies can only be used for cross-border or international payments if they do not enter the Russian domestic financial system.

In an interview with local news outlet Royal Bank of Canada (RBC), the head of Russia’s central bank said that digital currency should not be used as payment on platforms in Russia. Nabiulina believes this is why cryptocurrency prices are too volatile and therefore risky for retail investors.

Along with that, he adds, “Cryptocurrencies should not be traded in organised markets because these assets are flammable and harmful to potential investors.”

Nabiulina continued by saying that all rules and regulations set in place to protect investors must be followed by digital assets. Therefore, all assets listed on the exchange must have a prospectus and a responsible person, and meet the information disclosure requirements.

The Russian governor had previously called on the government to focus on encouraging the development of the digital asset project, which was being released by a leader in April. She discerns this vision with private cryptocurrencies such as Bitcoin (BTC), where no party is in charge and whose creator is not identified at all.

Nabiulina’s latest remarks similarly confirm that Russia may be ready to start using cryptocurrencies in international trade. In May, Ksenia Yudaeva, the first deputy governor of the Russian central bank, claimed that the central bank is open to allowing the use of cryptocurrencies in international payments.

Vladimir Putin, the president of Russia, stated that using cryptocurrency to settle transactions involving energy resources like oil was “premature” in October 2021.

Amid growing interest in international crypto payments, the Russian government has also been doing its best to prevent Russians from using crypto payments in the country. After formally banning crypto payments as part of Russia’s main crypto bill in January 2021, local lawmakers passed another bill on Tuesday to ban the use of digital financial assets.

Author

  • Yokesh Sankar

    Hi, I’m Yokesh Sankar, Co-founder & Chief Operating Officer at Dconn. Here, we believe in changing lives for the better and blockchain has endless possibilities to streamline virtually any industry you can imagine. I’m trying my best to advocate for the adoption of this revolutionary technology and we're helping businesses of all sizes realize their visions through blockchain. Here, I’ll be sharing everything I’ve learned over the years working in the industry and hoping to spread as much knowledge as I can about blockchain.

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