Russia To Legalize Use Of Cryptocurrency In International Trade

[Smartprofit]

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.

In my opinion, the authorities in Russia will not follow the path of legalizing bitcoin and other cryptocurrencies. 

Most likely, the Russian authorities will simply appoint a reliable person who will be entrusted with the organization of international operations with bitcoins.  His duties will include - providing cold storage of bitcoins and the circulation of cash fiat money.  Large organizations (exporters and importers) will be encouraged to interact with this person in all matters related to cryptocurrency transactions. 

Bitcoin volatility is not a problem when making international payments.  The contract may provide for the moment of a significant deviation of the bitcoin rate from the average for the week (up or down).

[coupable]

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.

In my opinion, the authorities in Russia will not follow the path of legalizing bitcoin and other cryptocurrencies.  

Most likely, the Russian authorities will simply appoint a reliable person who will be entrusted with the organization of international operations with bitcoins.  His duties will include - providing cold storage of bitcoins and the circulation of cash fiat money.  Large organizations (exporters and importers) will be encouraged to interact with this person in all matters related to cryptocurrency transactions.  

Bitcoin volatility is not a problem when making international payments.  The contract may provide for the moment of a significant deviation of the bitcoin rate from the average for the week (up or down).

If I could understand your position well, Bitcoin transactions are not difficult or unavailable to governments and banks, even against legislative frameworks. But it is not so easy if we confirm the process officially. It is not easy in all cases to confirm transactions through official frameworks, even if it is internationally trusted. As it is well known, Russia is in an economic predicament because of its war in Ukraine, and it is natural for it to make attempts to bypass the impact of economic and financial sanctions on it. And after entering the crypto market in a state of stagnation after the fall of the ftx platform, Russia will certainly make the necessary revisions and may postpone the implementation of its decision to adopt the crypto market.

[Captain Corporate]

I mean if you are sanctioned off from the rest of the world and the whole Europe is working towards nuclear or renewable energy so that eventually they wouldn't have to buy gas or oil from you, which means we are seeing last of "you ignore my dictatorship or you won't benefit from our resources!!!" then it is acceptable to just get crypto to do the job for you. I mean if russians can't accept ruble or even dollars because its sanctioned off, crypto is at least half hidden, so western companies could pay in crypto and hide it, and Russians could still get paid for whatever they want to get paid for. This is their only possible out.

[Smartprofit]

I mean if you are sanctioned off from the rest of the world and the whole Europe is working towards nuclear or renewable energy so that eventually they wouldn't have to buy gas or oil from you, which means we are seeing last of "you ignore my dictatorship or you won't benefit from our resources!!!" then it is acceptable to just get crypto to do the job for you. I mean if russians can't accept ruble or even dollars because its sanctioned off, crypto is at least half hidden, so western companies could pay in crypto and hide it, and Russians could still get paid for whatever they want to get paid for. This is their only possible out.

Yes that's right!  Russia exports not only gas and oil, it exports a lot of goods - gold, timber, ferrous metals, nitrogen fertilizers, grain and much more. 

How to get paid for goods sold in the context of international sanctions? 

One option is to use cryptocurrency.  At the same time, it is necessary not to prohibit the use of cryptocurrency within the country in order to hide some transactions among the mass of other transactions.  Therefore, in Russia it is advisable not to ban Bitcoin and other cryptocurrencies, but to organize a "gray" market for the circulation of cryptocurrencies.

[bakasabo]

As soon as Central Bank of Russia gets involved, it will be a start of death of Bitcoin on Russian Territory. Central Bank has already destroyed WebMoney. It was one of Russian first digital currency which has operated for 24 years. Survived less than 2 years after Central Bank spread its roots there. Or that legalized cryptocurrency in Russia will be like Bitcoin on PayPal - as an independent Bitcoin that circulates only in PayPal system and can not be withdrawn.

[davis196]

I still don't know whether Russia is a pro-crypto or an anti-crypto country. It depends of the financial situation, I guess.
The Russian financial and political elite doesn't like Bitcoin/crypto in general, but they will happily use crypto in order to avoid the western sanctions. If the global financial situation changes, the Russian elite will become anti-crypto in no time.
This is a more opportunistic view of crypto, in comparison to the idealistic view of crypto(which is basically wanting to adopt BTC/crypto because they like the core principles of decentralization and transparency).

[Smartprofit]

I still don't know whether Russia is a pro-crypto or an anti-crypto country. It depends of the financial situation, I guess.
The Russian financial and political elite doesn't like Bitcoin/crypto in general, but they will happily use crypto in order to avoid the western sanctions. If the global financial situation changes, the Russian elite will become anti-crypto in no time.
This is a more opportunistic view of crypto, in comparison to the idealistic view of crypto(which is basically wanting to adopt BTC/crypto because they like the core principles of decentralization and transparency).

I like to see the creation of Bitcoin as the beginning of an evolutionary process. 

Bitcoin is a kind of virus that is being actively modified in order to multiply and spread.  Bitcoin does not serve only idealists and cypherpunks, it uses scumbags, businessmen, bankers and officials for its own purposes. 

Bitcoin has a goal - to become a global currency.  And he uses every opportunity to get closer to achieving this goal. 

Sometimes the first cryptocurrency follows the path of competition with the old financial system, and sometimes the path of symbiosis with it.

[Argoo]

In my opinion, the authorities in Russia will not follow the path of legalizing bitcoin and other cryptocurrencies. 

Most likely, the Russian authorities will simply appoint a reliable person who will be entrusted with the organization of international operations with bitcoins.  His duties will include - providing cold storage of bitcoins and the circulation of cash fiat money.  Large organizations (exporters and importers) will be encouraged to interact with this person in all matters related to cryptocurrency transactions. 

Bitcoin volatility is not a problem when making international payments.  The contract may provide for the moment of a significant deviation of the bitcoin rate from the average for the week (up or down).

In other words, in Russia they can establish the possibility of making external financial transactions using cryptocurrencies for legal entities that serve state interests with a complete ban on using cryptocurrencies as a means of payment for other citizens. It may well be that in order not to escalate the situation with the provision of the selective right to use cryptocurrency as a means of payment only to certain entities, they will most likely grant such a right by some secret decree of Putin so that the people know less about it, or in general such activity will be completely classified.

[RolonNigel]

Because of energy issues, Russia must pay attention to this issue. Natural gas is used more in winter. However, no country can completely ban Bitcoin.

Cryptocurrency activities were previously banned in Nigeria, but the use of cryptocurrencies has finally been allowed. I think there will definitely be many more examples like this in the future.

Bitcoin will definitely be used globally, it is only a matter of time.

[justdimin]

I like to see the creation of Bitcoin as the beginning of an evolutionary process. 

Bitcoin is a kind of virus that is being actively modified in order to multiply and spread.  Bitcoin does not serve only idealists and cypherpunks, it uses scumbags, businessmen, bankers and officials for its own purposes. 

Bitcoin has a goal - to become a global currency.  And he uses every opportunity to get closer to achieving this goal. 

Sometimes the first cryptocurrency follows the path of competition with the old financial system, and sometimes the path of symbiosis with it.

It is definitely a very hardcore approach to it I am not going to argue against that. However, you are sort of right as well at the same time. I feel like the best way to approach Bitcoin is to accept that it is not going to go away, it will always be around. Sometimes it gets low and sometimes it gets high but it is always around. As people who have been through a big pandemic recently, we could draw some parallels to it in the end as well.

I believe that it doesn't really have any prejudices at all, bitcoin purchase helps or hurts everyone equally and doesn't care if you are rich or poor. If you hold it and it goes up, we all make a profit, if we hold it and it goes down then we all hurt together at the same time. White, black, Asian or African, Muslim or Christian, it doesn't care.

[Ozero]

In my opinion, the authorities in Russia will not follow the path of legalizing bitcoin and other cryptocurrencies. 

Most likely, the Russian authorities will simply appoint a reliable person who will be entrusted with the organization of international operations with bitcoins.  His duties will include - providing cold storage of bitcoins and the circulation of cash fiat money.  Large organizations (exporters and importers) will be encouraged to interact with this person in all matters related to cryptocurrency transactions. 

Bitcoin volatility is not a problem when making international payments.  The contract may provide for the moment of a significant deviation of the bitcoin rate from the average for the week (up or down).

We often discuss the possibility of legalizing cryptocurrency in Russia and its use by the Putin regime to circumvent international sanctions. But Russia’s war on the territory of Ukraine has been going on for almost a year now, sanctions are getting stronger and their negative effect on the Russian economy is growing, and we still don’t see any practical progress in this matter. Most likely, they will not be for the reason that the use of cryptocurrency will not save Russia from sanctions. In order to effectively circumvent sanctions, it is necessary first of all to move large consignments of sanctioned goods, and this is almost impossible to do covertly. Therefore, financial calculations for these goods fade into the background. Russia can always just use the currency of the state with which it trades. And using cryptocurrency for this may be unprofitable for Russia’s trading partner. Especially when it comes to China, which generally has a negative attitude towards cryptocurrency.

[Easteregg69]

In my opinion, the authorities in Russia will not follow the path of legalizing bitcoin and other cryptocurrencies.  

Most likely, the Russian authorities will simply appoint a reliable person who will be entrusted with the organization of international operations with bitcoins.  His duties will include - providing cold storage of bitcoins and the circulation of cash fiat money.  Large organizations (exporters and importers) will be encouraged to interact with this person in all matters related to cryptocurrency transactions.  

Bitcoin volatility is not a problem when making international payments.  The contract may provide for the moment of a significant deviation of the bitcoin rate from the average for the week (up or down).

We often discuss the possibility of legalizing cryptocurrency in Russia and its use by the Putin regime to circumvent international sanctions. But Russia’s war on the territory of Ukraine has been going on for almost a year now, sanctions are getting stronger and their negative effect on the Russian economy is growing, and we still don’t see any practical progress in this matter. Most likely, they will not be for the reason that the use of cryptocurrency will not save Russia from sanctions. In order to effectively circumvent sanctions, it is necessary first of all to move large consignments of sanctioned goods, and this is almost impossible to do covertly. Therefore, financial calculations for these goods fade into the background. Russia can always just use the currency of the state with which it trades. And using cryptocurrency for this may be unprofitable for Russia’s trading partner. Especially when it comes to China, which generally has a negative attitude towards cryptocurrency.

You know anything about liquidity pools?

He who as the money regulates the trading. It's not about politics any longer. China has the product. They want real money.

[Smartprofit]

In my opinion, the authorities in Russia will not follow the path of legalizing bitcoin and other cryptocurrencies.  

Most likely, the Russian authorities will simply appoint a reliable person who will be entrusted with the organization of international operations with bitcoins.  His duties will include - providing cold storage of bitcoins and the circulation of cash fiat money.  Large organizations (exporters and importers) will be encouraged to interact with this person in all matters related to cryptocurrency transactions.  

Bitcoin volatility is not a problem when making international payments.  The contract may provide for the moment of a significant deviation of the bitcoin rate from the average for the week (up or down).

We often discuss the possibility of legalizing cryptocurrency in Russia and its use by the Putin regime to circumvent international sanctions. But Russia’s war on the territory of Ukraine has been going on for almost a year now, sanctions are getting stronger and their negative effect on the Russian economy is growing, and we still don’t see any practical progress in this matter. Most likely, they will not be for the reason that the use of cryptocurrency will not save Russia from sanctions. In order to effectively circumvent sanctions, it is necessary first of all to move large consignments of sanctioned goods, and this is almost impossible to do covertly. Therefore, financial calculations for these goods fade into the background. Russia can always just use the currency of the state with which it trades. And using cryptocurrency for this may be unprofitable for Russia’s trading partner. Especially when it comes to China, which generally has a negative attitude towards cryptocurrency.

You and I don't know how the Chinese Communist Party really feels about Bitcoin.  

They probably consider Bitcoin to be a monetary surrogate and are opposed to Chinese citizens using Bitcoin in settlements within China.  

However, they may not mind using it for international transactions.  In China, the activity of independent miners is prohibited.  However, it is possible that the Chinese Communist Party itself mines Bitcoin and uses it to trade with countries that are under international sanctions (i.e. trade with Russia and North Korea).

[kro55]

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.

At first, when the war broke out and it was reported that Russia was accepting bitcoins and cryptocurrencies for payments to Russia-friendly countries. But so far, the war has lasted more than 300 days, and everything is still not ready, showing that it is not the key or really important factor for them. I mean, they're still conducting normal international trade with their partners, there's no sign that they're struggling with sanctions. But they chose bitcoin, probably as you mentioned, still need a plan b, a back door for sure.

[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.

At first, when the war broke out and it was reported that Russia was accepting bitcoins and cryptocurrencies for payments to Russia-friendly countries. But so far, the war has lasted more than 300 days, and everything is still not ready, showing that it is not the key or really important factor for them. I mean, they're still conducting normal international trade with their partners, there's no sign that they're struggling with sanctions. But they chose bitcoin, probably as you mentioned, still need a plan b, a back door for sure.

Sanctions mainly concern 2 key areas:
1. reduce the flow of currency from the sale of oil and gas, to stop "sponsoring" Russian terrorism
2. leave the economy and the military-industrial complex without high-tech components and technologies, because Russia is a technologically backward country, and cannot independently produce all the necessary components even for its military-industrial complex and industry

On the first point, there is progress, the demand for Russian hydrocarbons has fallen, for example, Germany, on 01/01/2023, completely abandoned oil, gas and coal from the country of the terrorist, and almost the entire EU. complete failure - during 2023. now, because of the sanctions and the embargo, Russia is suffering huge budget losses: The price ceiling for Russian oil is costing the Kremlin minus $172 million a day from planned revenues. Lost profits will rise to $280 million a day when the restriction is extended to petroleum products from February 5.

on the second point - there is also an effect. Russia is not able to provide its army with effective means for waging a terrorist war, and as you know, it begs rogue countries like Iran, North Korea for drones, shells and other weapons, the stocks of which are running out and production cannot produce them in sufficient quantities.

And note - it's only been 6 months since the sanctions began to take effect

[kro55]

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.

At first, when the war broke out and it was reported that Russia was accepting bitcoins and cryptocurrencies for payments to Russia-friendly countries. But so far, the war has lasted more than 300 days, and everything is still not ready, showing that it is not the key or really important factor for them. I mean, they're still conducting normal international trade with their partners, there's no sign that they're struggling with sanctions. But they chose bitcoin, probably as you mentioned, still need a plan b, a back door for sure.

Sanctions mainly concern 2 key areas:
1. reduce the flow of currency from the sale of oil and gas, to stop "sponsoring" Russian terrorism
2. leave the economy and the military-industrial complex without high-tech components and technologies, because Russia is a technologically backward country, and cannot independently produce all the necessary components even for its military-industrial complex and industry

On the first point, there is progress, the demand for Russian hydrocarbons has fallen, for example, Germany, on 01/01/2023, completely abandoned oil, gas and coal from the country of the terrorist, and almost the entire EU. complete failure - during 2023. now, because of the sanctions and the embargo, Russia is suffering huge budget losses: The price ceiling for Russian oil is costing the Kremlin minus $172 million a day from planned revenues. Lost profits will rise to $280 million a day when the restriction is extended to petroleum products from February 5.

on the second point - there is also an effect. Russia is not able to provide its army with effective means for waging a terrorist war, and as you know, it begs rogue countries like Iran, North Korea for drones, shells and other weapons, the stocks of which are running out and production cannot produce them in sufficient quantities.

And note - it's only been 6 months since the sanctions began to take effect

Is Russia technologically backward? Russia is a leading country militarily, they are always considered by the US as the most feared opponent.
If you look at the news of arms sales on the international market, the US will be ready to embargo or punish any country that buys Russian weapons that are not theirs, which is a cowardly, weak act of the country is considered to be the world's leading. If Russia were technologically backward, it would not have caused the US and 28 European countries to supply weapons to Ukraine in the past 11 months and still could not end the war.

As for the energy story, let's wait and see if the war doesn't end soon before winter 2023, and see who will lose in the EU-Russia war. It is too early to say who has failed.

[Ozero]

Is Russia technologically backward? Russia is a leading country militarily, they are always considered by the US as the most feared opponent.
If you look at the news of arms sales on the international market, the US will be ready to embargo or punish any country that buys Russian weapons that are not theirs, which is a cowardly, weak act of the country is considered to be the world's leading. If Russia were technologically backward, it would not have caused the US and 28 European countries to supply weapons to Ukraine in the past 11 months and still could not end the war.

As for the energy story, let's wait and see if the war doesn't end soon before winter 2023, and see who will lose in the EU-Russia war. It is too early to say who has failed.

Still, Russia is a technologically backward country. This was clearly shown by the war that she unleashed in Ukraine more than a year ago. When electronic chips and any products that can be used in the production of weapons fell under the sanctions, it became obvious that Russia, without the help of the West, is not able to manufacture and replenish losses in the war with its military equipment, since many components were previously imported from other countries. Therefore, electronic chips began to be removed from washing machines and other household appliances, but anyway, so far this does not help her much.

In addition, this war showed the general backwardness of military equipment in comparison with the weapons of the NATO countries. The delivery of several HIMARS to Ukraine completely changed the situation at the front, and the Russians turned out to be powerless against these weapons. The air defense of Russia also turned out to be weak. Now Russian weapons are being abandoned, and the military factories of NATO countries are loaded with applications for many years to come.

Yes, earlier the United States, like the entire bloc of NATO countries, was afraid to enter into a direct military conflict with Russia. But like so many things, Russia's military power turned out to be just a bluff. But now Russia is no longer afraid and does not respond to constant threats from its side. The "Second Army of the World" was completely defeated by Ukraine, which few people paid attention to before.

[DrBeer]

Most likely, the reason why in Russia, at the state level, "allows cryptocurrencies" does not aim only to circumvent sanctions. Trading for yuan, for example, partially solves the problem. Moreover, for Russia, the yuan will soon become the state currency
The meaning is different - Russia critically needs a CURRENCY, and not "wrappers". Without a currency, Russia cannot buy technology that is vital for Russia. They are not sold by China, India, or "terrorist brothers" Iran... They can be bought only in developed countries, and only for a stable currency - dollars or euros.
But Russia, having launched the hysteria "we will give up the dollar", once again shot itself in the foot, or even in two They refused the dollar, but they cannot live without the dollar! And there is no way back!
One of the ways to get currency through an alternative resource is cryptocurrencies. Why? Because neither the rupee nor the yuan, Russia can not exchange for dollars! And rubles and even more so ...
But the cryptocurrency - yes, both China and India will buy it, and for the currency, and it is not totally controlled, yet ..

BUT just do not think that this is a solution for the inhabitants of Russia! This is only to serve the elites, and their painful ideas, and the population should "enjoy stability in the ruble", the fate of these unfortunates does not bother the rulers of the Kremlin ...

[rokok lokal]

The announcement that Russia is close to pushing legislation for the use of cryptocurrencies in international trade has fueled interest and speculation among market watchers. The move comes as Russia seeks alternatives to the US dollar amid Western sanctions, and aims to facilitate more efficient cross-border settlements.

However, it seems that there are still questions around the regulatory framework that will be introduced to allow cross-border settlements in cryptocurrencies in Russia. It remains to be seen how this new policy will be implemented and whether it will lead to wider adoption of cryptocurrencies within the Russian financial system.

I think its developments are worth watching closely as they could have significant implications for the global cryptocurrency market and the wider financial landscape.

[Vishnu.Reang]

Now the situation is worst in Russia country is having negative effect that's why they are looking for back up. whatever happens happens for a reason. When situation became worst then Russia legalize use of Cryptocurrency in International trade. Very interesting to even hear a country this big and influential consider legalizing cryptocurrency in a public way. I support this. Though I'm sure it's not to the standards of idealists its a great step towards decentralization and innovation on the geo-economics scale