Probes into Russia’s digital assets take a new turn after the central bank governor revealed plans to list new entities to mine an asset class for international payments.
Governor of the Bank of Russia Elvira Nabiullina Said Lawmakers said the banking regulator has approved a pilot of mined digital assets to be used to settle international transactions. Nabiullina said the pilot would comply with existing regulations and would never deny the country’s stance on the use of digital currencies within its borders.
“We will maintain the same position as domestic cryptocurrencies. […] Do not use For external payments, we also assume that this is possible in the form of an experiment. The bill is also being prepared in the form of an experimental legal regime, ”said Nabiullina.
Under the experiment, the Central Bank of Russia will allow institutions to engage in mining digital assets like BTC, but the extent of the new entity’s operations remains unclear. He said deliberations were underway to define the scope and interaction with banking institutions and representatives involved in trade.
Alexey Guznov, deputy governor of the Bank of Russia, said: “As part of the experimental legal regime, an analysis will be carried out on what these entities will be like.” “We have not ruled out the possibility of private companies coming into being in the future.”
Since invading Ukraine in early 2022, the West has unleashed a barrage of economic sanctions against Russia, leading to the withdrawal of global payment institutions from the country. Perhaps the toughest sanction was the ban of Russian banking institutions from the SWIFT platform, which caused panic among key stakeholders.
Following a series of sanctions, Deputy Finance Minister Alexei Moiseyev announced that both the central bank and the Ministry of Finance are exploring the possibility of relying on digital currencies for cross-border payments. So far, plans for the Russian ruble with cross-border payments are in full swing, with a possible start date of 2023.
threaten dollar dominance
Russia’s reliance on digital currencies proves that countries see this asset class as a “fundamental shift in how individuals and organizations exchange value.”
As more countries rely on digital currencies, it could threaten the U.S. dollar’s dominance in global finance, said Gabriela Kuss, CEO of the Global Digital Assets and Cryptocurrency Association. The BRICS countries, consisting of Brazil, Russia, India, China and South Africa, are exploring new currency options for conducting transactions outside the dollar.
“Investors are increasingly mistrustful of the Fed, but neither investors nor the BRICS themselves will necessarily trust that the governing body of the Russian-led currency will not devalue itself. Said.
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