FameEX Hot Topics | Russia Initiates Regulation of Stablecoins for Cross-Border Transactions

Russia is considering incorporating stablecoins into a forthcoming bill, officially allowing their use for cross-border payments. Alexey Guznov, Deputy Chairman of the Bank of Russia, announced that proposals have already been presented and are currently under discussion. The Ministry of Finance has confirmed active work on this matter, indicating a significant regulatory development.

The primary aim is to enable stablecoins as a tool for international trade settlements. Guznov highlighted that while the proposal is still under discussion, several technical issues need resolution. These include establishing a regulatory framework that covers the entire process for individuals and companies to receive, store, and use these digital currencies for international payments.

Guznov stated, "Understanding is still being formed, and I hope that in the near future it will be reflected in the text of the bill." This indicates that while the concept is still evolving, there is a clear intention to formalize it in upcoming legislation. The Ministry of Finance’s press service confirmed ongoing efforts to address these issues. This initiative could become a permanent fixture, similar to the digital financial assets (DFA) law approved in March.

Support for using stablecoins in cross-border settlements is growing among various Russian figures. Stablecoins, which are tokens pegged to the value of other assets or fiat currencies (primarily the U.S. dollar), are favored for their versatility and stability during payments. Alexander Murychev, executive vice president of the Russian Union of Industrialists and Entrepreneurs, described stablecoins as "very promising" for this purpose. Natalia Milchakova, a leading analyst at Freedom Finance Global, added that stablecoin transactions are difficult for third-country regulators to track, making them particularly attractive for conducting payments without the fear of secondary sanctions from Western countries.

Additionally, Elvira Nabiullina, Governor of the Bank of Russia, recently stated that the institution had softened its stance on using cryptocurrencies for international payments. She encouraged the use of digital currencies to circumvent Western sanctions, reflecting a significant shift in policy. This change indicates a strategic move to integrate digital currencies into Russia’s financial system, enhancing its international trade capabilities while navigating geopolitical pressures.

In summary, Russia is actively exploring the use of stablecoins for cross-border payments. With high-level support and ongoing discussions, the incorporation of stablecoins into Russia’s financial legislation appears to be a promising development. If successful, this initiative could significantly bolster Russia’s international trade operations and provide a robust hedge against geopolitical risks.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.