Russia is reportedly considering using stablecoins to make international payments, according to state media.
According to a new report from Russian state publication Izvestia, Russia wants to legalize the use of stablecoins for cross-border payments.
The report did not specify which type of stablecoins the Russian government is considering.
The Deputy Chairman of the Russian Central Bank, Alexei Guznov, told Izvestia that the proposals to legalize stablecoins have been formulated and discussed since 2023.
According to him, the rules will probably have to be tightened to protect the interests of the country.
As Guznov said:
“Understanding is still being formed and I hope this will result in the text in the near future [of the bill].”
Alexander Murychev, executive vice president of the Russian Union of Industrialists and Entrepreneurs (RSPP), told Izvestia that stablecoins would not only add a large number of liquidity markets, but would also flourish as settlement tools for other BRICS countries.
BRICS is an economic alliance between several countries such as Brazil, Russia, India, China and South Africa.
In March 2024, Russian President Vladimir Putin signed a law allowing the use of ‘digital financial assets’ (DFAs) – or digital representations of contract rights that can be exchanged – for international payments.
Murychev says companies have had difficulty using DFAs because of the risks of secondary sanctions.
However, Natalya Milchakova, chief analyst at Freedom Finance Global, tells the publication that the companies would not have such problems with stablecoins, as they would allow anyone to make settlements with sanctioned individuals without fear of secondary sanctions.
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Featured image: Shutterstock/Fred Mantel