Russia Begins Cryptocurrency Trials

- The Russian government is beginning experiments on using cryptocurrency exchanges and digital tokens for cross-border transactions. The trials are set to begin on September 1 and are aimed at easing payment difficulties for local companies facing international sanctions.

- The trials will focus on exchanges between rubles and cryptocurrencies, which could be a potential lifeline for companies struggling to make cross-border payments.

- Russia is reportedly facing increasing difficulties in paying suppliers abroad and receiving payments for exported goods after the US imposed a tighter embargo in June.

- In July, parliament passed laws legalizing crypto mining and creating a framework for testing digital tokens for cross-border payments. President Vladimir Putin signed the laws into law on August 8, paving the way for the trials.

- The initiative represents a shift in the central bank’s stance, which has proposed a blanket ban on the use and creation of digital assets in 2022.

- The authorities are continuing their efforts to find ways to legalize exchanges, Finance Minister Anton Siluanov said at a forum on August 14.

- The trials will be monitored by the National Payment Card System (NPCS) due to its existing infrastructure and regulatory framework. If successful, the Moscow and St. Petersburg Stock Exchanges could launch official cryptocurrency platforms as early as 2025.

- Any existing digital asset could be used in the trials, which could significantly expand the country's scope of electronic financial transactions. 🚀