Russia To Legalize Use Of Cryptocurrency In International Trade

[Hydrogen]

• Russia is close to pushing legislation for the use of cryptocurrency in international trade.
• In current conditions “it is impossible to do without cross-border settlements in cryptocurrency,” the Bank of Russia and Ministry of Finance have reportedly agreed.
• The necessary regulatory framework will still need to be introduced.

The Bank of Russia and the country’s Ministry of Finance have reconsidered their positions toward cryptocurrency, acknowledging it to be necessary to legalize the use of cryptocurrencies in cross-border settlements, per a report by local news outlet TASS.

According to TASS, the two government bodies have agreed that “it is impossible” to continue without enabling cryptocurrency as a legal payment method for international trade.

The move comes as Russia dabbles on how to best regulate the Bitcoin and cryptocurrency markets. Swamped in Western sanctions, the world’s largest country has sought alternatives to the U.S. dollar so as to guarantee the efficient trade of its commodities.

In March, the chairman of the country’s Congressional energy committee, Pavel Zavalny, said the country was open to taking payments for natural gas and other natural resources exports in bitcoin.

“When it comes to our ‘friendly’ countries, like China or Turkey, which don’t pressure us, then we have been offering them for a while to switch payments to national currencies, like rubles and yuan,” Zavalny said at the time. “With Turkey, it can be lira and rubles. So there can be a variety of currencies, and that’s a standard practice. If they want bitcoin, we will trade in bitcoin.”

In May, it was reported that Russia was “actively discussing” using cryptocurrency in international trade.

Now, the imminent actualization of such a move shifts the tide as President Vladimir Putin last year had dismissed the possibility in an interview at the Russian Energy Week event in Moscow.

“I believe that it has value,” Putin said at the time, referring to bitcoin. “But I don’t believe it can be used in the oil trade.”

According to TASS, the necessary regulatory framework to enable cross-border settlements in cryptocurrency in Russia will still be introduced.

https://bitcoinmagazine.com/business/russia-to-legalize-use-of-crypto-in-international-trade

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Russia's energy committee announced they were open to accepting payments for natural gas and other commodity exports in bitcoin as of march 2022.

While Putin is quoted as saying bitcoin has value but may not be fit for use in the oil trade.

Curious as to what may have prompted this latest development in russian monetary policy. What is the motive behind this?

Banks have in the past refused to carry out transactions for russia. Perhaps this is intended to allow russia and its trading partners to cut bank middle men out of the equation?

Or perhaps there are other motives behind it.

[pooya87]

It always gives me a bad feeling when they use the term "cryptocurrency" instead of just "bitcoin". This has been an ongoing trend, recently Iran publicly announced the same thing also, someone even mentioned Tether which I can only hope they did it out of being uninformed instead of being stupid enough to actually think a centralized shitcoin that can be frozen is a good option to use!

Curious as to what may have prompted this latest development in russian monetary policy. What is the motive behind this?

A couple of years ago I said the world is moving away from US dollar but at the time they were still arguing about the replacement. My analysis was that they came up with a couple of options instead of just one.
- Gold (a lot of international trades have already happened using gold directly)
- Each country's own currency (as it was also mentioned in the quote above)
- Alternative payment systems to replace SWIFT like the Russian SPFS
- Finally bitcoin was discussed at that time
(we later learned about gov-coins or CBDCs that seems to be another option, the Chinese one is claimed to have already processed a huge amount of transactions)
My point is that the Russian sanctions aren't the cause of this move, they are the catalyst. This has been going on for a couple of years at least. The reason is just the introduction of the New World Order; a large part of US dominance is in dollar. Take that away and it removes a big chunk of it.

P.S. I'm mostly curious about what each of these countries are going to do about the volatility.

[Leviathan.007]

That's not surprising for me at all to see Russia doing that and when they said international trade this means they will only allow the people who are near the government to trade with cryptocurrencies because as far as I know in Russia mostly the rich people and the people who are actively doing international trades are near to the government and somehow related together, so that was very much expected to see Russia letting these people to any cryptocurrencies trades without of any problem because these people are also helping the government with the economic sanctions which can be important for the government.

[Lucius]

Too much noise for no reason when it comes to Russia - because their legalization of what they call "cryptocurrencies" is taking much longer than it has been for the past few months. In the end, it all came down to a bunch of unverified information and recycling of old news.

Two key things that are recycled in the article are the mention of Bitcoin as a means of payment for countries that would like it when it comes to trading with Russia, but isn't it ironic that they mention Turkey that has banned Bitcoin as a means of payment, or China that has banned everything what does it have to do with cryptocurrencies? The second, even more important fact is what the great leader thinks about it, and he clearly said that he does not think it is an option.

Will the Russians start using their cryptocurrency or will the Chinese use their digital yuan in international trade is a much more meaningful question than whether they will use Bitcoin. In the event that Bitcoin is in such a focus, it will not be anything good because then it will become just another target that will need to be sanctioned.

[DrBeer]

The only purposes this "solution" has are:
- an attempt to show that Russia will be able to "dodge" the sanctions that from January 1, 2023 will fully hit its oil and gas sector.
- but like most "solutions" this is an ordinary Russian idiotic decision The problem is that the sanctions speak of a ban on the purchase of this raw material from Russia, for example, by the European Union. Those. The EU will not buy oil at all, not for dollars or euros!
- China and India are unlikely to rush to buy bitcoin now in order to buy Russian oil and gas that no one needs in the short term! Why ? Because Russia simply has nowhere to store its oil and gas, and if they wait a bit, they will sell it for $10 and $1 each And India and China still do not hesitate to pay the country to a terrorist. I am sure that after the ban in the EU, they will not stop buying either. But as "Russia's best friends" - of course for a penny, forcing Russia to comply with all their demands. Since Russia will simply have nowhere to go

[Argoo]

Too much noise for no reason when it comes to Russia - because their legalization of what they call "cryptocurrencies" is taking much longer than it has been for the past few months. In the end, it all came down to a bunch of unverified information and recycling of old news.

The war unleashed by Russia in Ukraine and harsh international sanctions have led Russia to isolation and a sharp decline in the economy. Under these conditions, it is expected that the government of Russia will prohibit the export of capital from the country, which means there will be bans on cryptocurrencies.

On November 17 of this year, a rather controversial bill on mining was submitted to the State Duma of the Russian Federation. He proposes "regulation" of cryptocurrency mining activities, and in fact - its ban on the territory of the country. "The circulation of cryptocurrency will be prohibited by law," said Anatoly Aksakov, chairman of the Russian State Duma committee on the financial market. The Russian parliamentarian added that the bill on mining, introduced on November 17, provides for a complete ban on the circulation of cryptocurrency.

Thus, according to the scandalous bill, the digital currency obtained as a result of mining will henceforth be subject to "realization without the use of the Russian information infrastructure." Exceptions are provided only for "transactions under the experimental legal regime", that is, which are carried out only by the authorities of the Russian Federation.

Now we can say for sure: the leadership of the aggressor state has declared a real war on cryptocurrency. One of the few remaining opportunities to conduct full-fledged financial transactions in Russia is now "fixed".

[Lucius]

Now we can say for sure: the leadership of the aggressor state has declared a real war on cryptocurrency. One of the few remaining opportunities to conduct full-fledged financial transactions in Russia is now "fixed".

They, like China, have been at war against Bitcoin since the very beginning, only China has always been in the public's focus because it has 10 times more people than Russia, and because of the very cheap price of electricity. Realistically speaking, Russia can pass any law that will ban this or that, but ordinary people will always find a way to use what they want.

Even this forum is blocked in Russia (as far as I know), but that does not mean that Russians have stopped using it. Bitcoin in Russia as some kind of legal payment method while the country is organized in this political-military way has no chance, but that does not prevent anyone from sending and receiving transactions with anyone anywhere in the world.

[Cryptomultiplier]

What is surprising to me is the fact that Russia have come around to accept the use of bitcoin in large base to trade mostly during these times with war efforts and sanctions imposed. It is good, as it will ease the major world of the recession issues we are facing. I know the war is a contributing factor to the high inflation and scarcity of natural gas and other much tradables that have been needed.
The country has been known for its strict policies and this acceptance I feel will affect the rate or influence the crypto market if enacted.

[cabron]

Isn't this the beauty of crypto that even if the country bans its use of it, people can find a way to still own and transact with crypto?

China bans BTC and mining AFAIK but the Chinese are still mining and using BTC. Nothing captures BTC even the authoritarian government but they at least have clear laws about it.

[Gozie51]

What is surprising to me is the fact that Russia have come around to accept the use of bitcoin in large base to trade mostly during these times with war efforts and sanctions imposed. It is good, as it will ease the major world of the recession issues we are facing. I know the war is a contributing factor to the high inflation and scarcity of natural gas and other much tradables that have been needed.
The country has been known for its strict policies and this acceptance I feel will affect the rate or influence the crypto market if enacted.

Moreover this decision is not far away from the ban on the Russian economy because most transaction in Russia are facing this due to the war and that is having negative effect on them. They are struggling to balance their economy they have to encourage flow of financial transactions , making business transactions for the interested aligns to patronize at anytime because there are no limitation with bitcoin payment or third party agents.

[justdimin]

What is surprising to me is the fact that Russia have come around to accept the use of bitcoin in large base to trade mostly during these times with war efforts and sanctions imposed. It is good, as it will ease the major world of the recession issues we are facing. I know the war is a contributing factor to the high inflation and scarcity of natural gas and other much tradables that have been needed.
The country has been known for its strict policies and this acceptance I feel will affect the rate or influence the crypto market if enacted.

Surprising in a way that Russia is a strict country and are very allergic in many things but it's great that they made an exception with btc. I think that's because they found that btc is not controlled by anyone so they know that no one would stop them if they use this. Anyway, this topic was posted way back on September, so if you are active that time then this news won't surprise you anymore.

There's also no recession that time but I think we are at it now. Russia might still be using btc but is there any change the way we feel the recession? I guess there's nothing and even the btc itself is also been affected by it. Just continue doing your best, I know we can survive a situation like this.

[DrBeer]

The criminal and terrorists are always looking for ways to avoid well-deserved restrictions and punishments. As you understand, there is NO gold, no stable currencies, or anything liquid in the terrorist country, Russia! Or the stocks of such assets are critically declining, and will soon disappear too. Therefore, they are grasping at straws in the form of cryptocurrencies. This is expected. But as you noticed, over the past 3 years, the global system for controlling and monitoring the movement of payments, including cryptocurrency ones, has changed a lot.

I do not think that China, India and similar countries will bother and try to circumvent international sanctions against the country of an international terrorist. About China and India, no later than February 2023, you will learn the news about the change of oil suppliers, possibly earlier. Although the price there will not be as low as oil from Russia, which has come under sanctions and embargoes.

The second question is where will the elites and tops of such rogue countries as Russia put these cryptocurrencies? For them, you just can’t buy a yacht, a villa or a diamond necklace for a new mistress. Normal sellers require normal, liquid money. I do not believe that a HUGE shadow world market will appear, a copy of the real one where everything will be sold for cryptocurrency.

Well, and most importantly - - if Russia legalizes cryptocurrency - what will the whole world do about it? Who is Russia in the global economy? A point that is barely noticeable and which is constantly decreasing It's like I would now say that from today we are switching to dollars, which I will print on my printer

[so98nn]

They are looking for the back door for sure. Now the situation is even worst than before so it’s undeniably sure that they would want to have the bitcoin on board and see which countries are open to trade with them. Considering various sanctions they have lost the battle of trades in international market and must be struggling with the financial burden. It’s clear because they are not really receiving funds but loosing it all in one war. Now no country would ever expose their financials on paper, so as to Russia. It must be making them hardened over various situations now which might have made them to come to this conclusion.

[DrBeer]

They are looking for the back door for sure. Now the situation is even worst than before so it’s undeniably sure that they would want to have the bitcoin on board and see which countries are open to trade with them. Considering various sanctions they have lost the battle of trades in international market and must be struggling with the financial burden. It’s clear because they are not really receiving funds but loosing it all in one war. Now no country would ever expose their financials on paper, so as to Russia. It must be making them hardened over various situations now which might have made them to come to this conclusion.

try from the point of view of the country's economy, to explain what real benefits a country can give to a terrorist, the transition to paying for oil and gas in cryptocurrency?
The main consumers of Russian hydrocarbons:
1. EU - oil embargo, pipeline. Provided that the EU has already found a replacement for this oil. Crypto doesn't solve the problem here
2. The EU - the main and largest consumer of gas - the EU. After Russia blew up its Serven Stream 1 and 2 gas pipelines (in order not to pay fines and continue terror against the EU), the EU was also replaced by 90+% with long-term gas supply contracts Here, at least for cowrie shells, sell gas - there is no buyer anymore
3. India and China. Friends about whom they say "you don't need enemies with such friends" They buy gas, oil, coal at absolutely dumping prices, dictating conditions to the Kremlin. From 2023, the price for China will probably be at the level of 15-20 dollars per barrel (+/-, we will soon find out for sure)

And where is the place to solve the problem with the help of cryptocurrency?

[coupable]

I do not think that the world can succumb to Russian desires to adopt new global strategies, especially if they are in the interest of Russia and give it opportunities to circumvent the economic sanctions imposed on it. It seems that the FTX drama further complicated the matter and limited Russia's chances of finding alternative options.
Today, I published news about North Korea providing Russia with military equipment, which indicates that Russia is facing wholesale crises on all levels, including military and economic ones. Also, this may indicate that some of its allies abandoned it due to regional pressures, perhaps or international temptations.

[tjtonmoy]

Not sure what they are up to this time, but whatever they are doing may benefit them somehow. Let them do what they want. We need to focus on what we are gaining from this. If this could benefit the community then I guess whatever they do, I have no complaint. But if this is some kind of scheme to do something horrific this time, then I don't want them to succeed.

[Smartprofit]

Not sure what they are up to this time, but whatever they are doing may benefit them somehow. Let them do what they want. We need to focus on what we are gaining from this. If this could benefit the community then I guess whatever they do, I have no complaint. But if this is some kind of scheme to do something horrific this time, then I don't want them to succeed.

Such a move by the Russian government was previously predicted by the well-known Russian economist Potapenko.  

Currently, international settlements of residents of the Russian Federation using foreign currencies (US dollar, euro, British pound sterling, Swiss franc, etc.) are subject to international sanctions.  

Therefore, Russian organizations cannot receive cash proceeds from the sale of their goods abroad and cannot purchase the foreign goods and materials they need.  

The situation can only be saved by the use of cryptocurrencies in international settlements with foreign counterparties.  

This applies not only to Bitcoin, but also to Monero (the best anonymous and confidential cryptocurrency).

[Moeda]

Not sure what they are up to this time, but whatever they are doing may benefit them somehow. Let them do what they want. We need to focus on what we are gaining from this. If this could benefit the community then I guess whatever they do, I have no complaint. But if this is some kind of scheme to do something horrific this time, then I don't want them to succeed.

Maybe you don't understand what the OP meant in this topic. Of course what Russia is doing has to do with everyone using Bitcoin right now. So we need to follow the development of Bitcoin. Including the development of information on who will use Bitcoin. The simplest effect we get is a price change.

Russia's energy committee announced they were open to accepting payments for natural gas and other commodity exports in bitcoin as of march 2022.

While Putin is quoted as saying bitcoin has value but may not be fit for use in the oil trade.

Curious as to what may have prompted this latest development in russian monetary policy. What is the motive behind this?

Banks have in the past refused to carry out transactions for russia. Perhaps this is intended to allow russia and its trading partners to cut bank middle men out of the equation?

Or perhaps there are other motives behind it.

If Russia uses Bitcoin as a transaction tool to replace bank transactions in terms of world trade, of course this is the most important part for the development of Bitcoin. So that Bitcoin adoption will include countries that cooperate in the field of trade with Russia.

But I believe that the Russian state is not ready to do this. If they want to use Bitcoin, of course they will develop a wallet that is used specifically for the state, not the result of developing a private party or other individual. This relates to the security of state finances.

Another motive is that many countries are currently breaking off cooperation with the Russian state. So that transactions between Russia and other European countries stop, or the central bank does not allow a country's transactions with Russia. So that another alternative for countries that continue to cooperate in the field of trade with Russia is to make transactions with Bitcoin. Even though the condition of the Bitcoin price is classified as highly fluctuating, they can still use the standard value of Bitcoin.

Because the problem with transactions between countries is that they have to go through a long process, unlike the transactions we are doing today, country transactions of course have to go through certain rules and certain agreements that take a long time, so the price of Bitcoin has the possibility to change. to a higher or lower number.

[DrBeer]

This is why the rules for working with cryptocurrencies are being tightened all over the world. Under this, they launched legislation that introduces criminal liability for assistance in circumventing sanctions. And another nuance - if bitcoin eventually ends up 99% in the hands of the Kremlin - it will simply not be of interest to everyone else, because. it will cease to be something publicly available, but will become a kind of toxic asset that can only be paid off ... with Russia? And what can a technologically backward country, a raw material appendage of China, and a country that is a pariah for the rest of the world suggest?

I do not think that the world can succumb to Russian desires to adopt new global strategies, especially if they are in the interest of Russia and give it opportunities to circumvent the economic sanctions imposed on it. It seems that the FTX drama further c! how can the global economy and rules omplicated the matter and limited Russia's chances of finding alternative options.
Today, I published news about North Korea providing Russia with military equipment, which indicates that Russia is facing wholesale crises on all levels, including military and economic ones. Also, this may indicate that some of its allies abandoned it due to regional pressures, perhaps or international temptations.

By itself ! How can about 1% of its volume affect the global economy? Moreover, the country is essentially a raw material appendage of the world? And today the country is also an international terrorist. The country is an international outcast! No way. This is just a repetition of the story of North Korea, where only in their inflamed painful imagination the whole world is afraid of them, they have the most "unparalleled" weapons, the strongest army and economy While Russia really does not remove fakes about how they won all the Olympiads and championships of the world, flew a manned spacecraft into the sun and returned back... But Russia has someone to look up to and from whom to learn from the experience of severe systemic delirium in an isolated society So soon "Russian North Korea" may appear on the map

PS Although I am a supporter of the fact that this artificial, bloody, terrorist entity should be divided into several independent states, with external control. These are guarantees of the destruction of world terrorism and a peaceful life on Earth...

[moderator's note: consecutive posts merged]

[Argoo]

Currently, international settlements of residents of the Russian Federation using foreign currencies (US dollar, euro, British pound sterling, Swiss franc, etc.) are subject to international sanctions.  

Therefore, Russian organizations cannot receive cash proceeds from the sale of their goods abroad and cannot purchase the foreign goods and materials they need.  

The situation can only be saved by the use of cryptocurrencies in international settlements with foreign counterparties.  

This applies not only to Bitcoin, but also to Monero (the best anonymous and confidential cryptocurrency).

Under the current authoritarian rule in Russia, there will never be a legalization of cryptocurrency. Politicians, including Putin, may say good things about cryptocurrency, but they will never allow their people to have free access to it. Therefore, Russia has the worst legislation in relation to cryptocurrency among European countries. I wouldn’t even be surprised if criminal liability for the use of cryptocurrency as a means of payment is introduced there, which has been talked about for a long time and there is a bill in the State Duma.

For international payments, the Russian government can use cryptocurrency without the appropriate laws for this, but it is unlikely to do so. It is quite a risky asset due to its high price volatility. In addition, for this it is necessary that the other party agrees to such payments. In any case, if the calculations in the cryptocurrency will take place, then we will not know about it anyway, since it will be classified.