The Russian central bank now appears to be collaborating with the country’s ministry of finance to legalize the use of cryptocurrencies for international payments. As a result, the nation will apparently seek to allow international bitcoin payments soon.
The action is reportedly part of an effort to get around the nation’s SWIFT (the international payment system) disconnection, enabling payments to and from local vendors. News reports quoting TASS, a local Russian news agency, make this allegation.
The deputy finance minister of Russia, Alexei Moiseev, has noted that many Russians have created bitcoin wallets using foreign websites. The official insisted that Russia must take action by involving organizations governed by the central bank and mandated to follow Know Your Customer and anti-money laundering laws.
In June of this year, the Russian government made another step in favor of cryptocurrencies when it passed a draft law that may exclude issuers of digital assets and cryptocurrencies from value-added tax. The proposal in the document also suggested lowering the income tax rates applied to sales of digital assets.
In 2020, Russia forbade cryptocurrency payments.
In 2020, Russia’s ‘On Digital Financial Assets’ crypto legislation proposal was accepted, making it illegal to use cryptocurrencies like Bitcoin (BTC) as a form of payment. The Bank of Russia has been hesitant of facilitating cryptocurrency payments in any way as the Russian ruble is the only legal tender in the country, and Russian legislators have long been opposed to the idea of enabling cryptocurrencies to be used as payment.
Elvira Nabiullina, the governor of the Bank of Russia, later asserted that cryptocurrencies might be used for international payments, but only if the asset class is prohibited from entering the Russian financial system. The Minister of Industry and Trade reaffirmed the idea, saying that Russia would “sooner or later” allow cryptocurrency payments.
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