FameEX Hot Topics | Russia Moves to Regulate Stablecoins for Cross-Border Settlements

Russia is considering incorporating stablecoins into an upcoming bill, allowing their official use for cross-border payments. Alexey Guznov, Deputy Chairman of the Bank of Russia, announced that proposals have already been presented, and discussions are underway. The Ministry of Finance confirmed that this matter is actively being worked on.

Russia aims to enable stablecoins as a tool for international trade settlements. Guznov noted that while the proposal is under discussion, some technical issues must be resolved. These include regulating 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." The Ministry of Finance's press service confirmed ongoing efforts to address this issue. This initiative may become a permanent fixture, similar to the digital financial assets (DFA) law approved in March.

Various Russian figures have supported using stablecoins, which are tokens pegged to the value of other assets or fiat currencies (primarily the U.S. dollar), for cross-border settlements due to 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 appealing for payments without the risk of secondary sanctions from Western countries.

Elvira Nabiullina, Governor of the Bank of Russia, recently stated that the institution had softened its stance on using crypto for international payments, promoting their use to circumvent Western sanctions. This shift indicates a strategic move to integrate digital currencies into Russia's financial system, aiming to bolster its international trade capabilities while navigating geopolitical pressures.

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