Russia Launches “Unrestricted” Cross-Border Payment System

Russia launched a cross-border payment system “bound by no restrictions” where digital currencies can settle cross-border transactions.

On Monday, Russian Finance Minister Anton Siluanov announced that the country is to implement a new cross-border payment system “bound by no restrictions.” Minister Siluanov said digital currencies could be used for international payments without interference.

Russian news outlet Tass reported the news.

Russia Introduces an Unrestricted Crypto Cross-Border Payment System

The finance minister is quoted as saying:

We are launching an alternative system of payments based on modern technologies (digital financial assets, digital currencies).

Adding:

Digital currencies could be used in cross-border payments. This is just at the earliest phase of discussions, but the future lies with the use of the digital ruble, the digital yuan, and other similar currencies.

Minister Siluanov emphasised:

This is a system of payments that is bound by no restrictions. Two parties come to an agreement, make settlement payments, and no other country could step in and freeze such payments.

Russia Crippled by Economic Sanctions

Following Russia’s invasion of Ukraine in early 2022, Western nations imposed harsh economic sanctions on the Federation. In a bid to circumvent the sanctions and a bit of desperation, the State Duma – the lower house of parliament, said it would consider a bill that would legalise a crypto market within the country.

Russia’s infamous president, Vladimir Putin, criticised the sanctions against his home country, labelling them as “illegitimate restrictions.” President Putin pointed out that the current global financial system is highly monopolised and expressed the need for a global payment system powered by blockchain technology devoid of interference. He added:

The existing system of international payments is expensive, the system of its correspondent accounts and regulation are controlled by a narrow club of states and financial groups.

Bank of Russia Tests International Crypto Payments

Not long after President Putin commented on the usefulness of a blockchain-based global payment system, the Bank of Russia (BoR) said it was planning to test the use of cryptocurrencies for international payments within a regulatory sandbox framework.

First Deputy Chairperson of the Central Bank, Olga Skorobogatova, said the BoR would implement a pilot project with interested market players. She added:

We currently plan to test using cryptocurrency for international payments, meaning for international economic activities, within the framework of the regulatory sandbox.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.