Russia is working with several friendly unnamed nations to develop bilateral platforms for cross-border settlements in stablecoins, according to a report by Russian media TASS, citing a statement from Russia’s Deputy Finance Minister Alexey Moiseyev.
The move comes just a day after the Finance Ministry and the Bank of Russia agreed to legitimize the use of cryptocurrencies for cross-border payments, saying that the use of the asset class for such payments is inevitable.
Using Stablecoins for Cross-Border Settlements
Moiseyev stated that the bilateral platforms will enable Russia to make cross-border payments in stablecoins with several friendly nations without using fiat currencies including dollars and euros.
“We are currently working with a number of countries to create bilateral platforms in order not to use dollars and euros. We offer mutually acceptable tokenized instruments that will be used on these platforms, which are essentially clearing platforms that we are currently developing with these countries. Stablecoins can be pegged to some generally recognized instrument, for example, gold, the value of which is clear and observable for all participants,” Moiseyev said.
Russia Turns to Crypto
Russia has historically maintained a tough stance towards the use of cryptocurrencies and has instead been supportive of the Ruble. The Bank of Russia once called on the country’s lawmakers to outrightly ban the use of cryptocurrencies, saying that its volatile nature makes it highly risky for investors and also poses a threat to Russia’s financial stability.
In July, Russian President Vladimir Putin also signed a new bill into law, banning the use of Bitcoin and cryptocurrencies as a means of payment in the country.
However, Russia has now agreed to use crypto for cross-border payments with the Finance Ministry and the Bank of Russia admitting that “it is impossible to do without cross-border settlements in cryptocurrency” due to western sanctions placed on the country for its invasion of Ukraine.
Meanwhile, another report in July revealed that pro-Russian groups raised over $2.2 million in cryptocurrencies including Bitcoin (BTC) and Ethereum (ETH) to fund Russia’s war against Ukraine.
