Russia is reportedly considering using stablecoins to make international payments, according to state-run media.
According to a new report by Russian state publication Izvestia, Russia is looking to legalize the use of stablecoins to make cross-border payments.
The report didn’t mention what type of stablecoins the Russian government is considering.
The Deputy Chairman of Russia’s Central Bank, Alexei Guznov, told Izvestia that the proposals to legalize stablecoins have been formulated and discussed since 2023.
According to him, regulations will likely need to be tightened to protect the nation’s interests.
As stated by Guznov,
“Understanding is still being formed, and I hope that in the near future it will result in the text [of the bill].”
Alexander Murychev, executive vice president of the Russian Union of Industrialists and Entrepreneurs (RSPP), told Izvestia that stablecoins will not only add a large amount of liquidity markets, they would also thrive as settlement tools for other BRICS nations.
BRICS is an economic alliance between several nations, such as Brazil, Russia, India, China, and South Africa.
In March 2024, Russian President Vladimir Putin signed a law that allows the use of “digital financial assets” (DFAs) – or digital representations of contract rights that can be exchanged – for international payments.
Murychev says that businesses have had difficulty using DFAs due to the risks of secondary sanctions.
However, Natalya Milchakova, leading analyst at Freedom Finance Global, tells the publication that the firms would not have such troubles with stablecoins as they would allow anyone to make settlements with sanctioned individuals with no fear of secondary sanctions.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/Fred Mantel