Key points
- Russian cryptocurrency exchange tests begin in response to international sanctions.
- The tests will use the National Payment Card System for conversions from rubles to cryptocurrencies.
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Russia will begin testing cryptocurrency exchanges on September 1 as a strategy to mitigate the impact of international sanctions, according to Bloomberg reported Monday, citing sources familiar with the matter.
The upcoming tests will focus on facilitating conversion between rubles and cryptocurrencies using the National Payment Card System. The system, fully regulated by the Bank of Russia, includes functions such as interbank settlement and clearing, making it a viable platform for such tests.
The tests are aimed at offering Russia an alternative for cross-border transactions, especially given the difficulties presented by traditional payment systems. Russian exporters have had difficulty purchasing foreign supplies and receiving payments due to ongoing Western sanctions.
The success of these tests could offer a powerful alternative to traditional financial systems. It could also lead to a broader adoption of cryptocurrencies for cross-border transactions.
Digital assets have gained ground among Russian authorities, despite certain restrictions on their use. These advances are due to the need to find alternative payment methods amid international sanctions.
Discussions are underway in Russia on how to regulate cryptocurrency exchanges and integrate them into the economy instead of implementing a complete ban.
On August 8, President Vladimir Putin approved the creation of a legal framework for cross-border crypto transactions and signed a law allowing cryptocurrency mining within the country.
A recent report from a local media outlet revealed that Moscow was considering Establish at least two national cryptocurrency exchanges To support global trade, the country is eyeing Moscow and St. Petersburg for its plan.
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