Russia Prepares Draft Law to Allow Crypto for International Trade Settlements

As several nations consider reducing their dependency on the U.S. dollar for global trade, Russia is now looking at the possibility of using cryptocurrencies for international trade settlements. According to a report by a Russian media outlet, a draft law is already being prepared to allow the asset class to be used to settle international deals.

Russia Considers Crypto for External Settlements

The report cited statements from Russia’s central bank chairman Elvira Nabiullina, saying that the regulator could use cryptocurrencies in settlements with foreign entities. She added that such operations would be possible within the framework of the experiment.

Although the central bank opposes the use of cryptocurrency within the state, the regulator believes such digital assets can be used for external payments. This, according to the report, suggests that special institutions will be created that will engage in the mining and transfer of cryptocurrency to foreign entities. These institutions will also deal with operations with other digital finances, according to the report. 

Per the report, the central bank is consulting with the government about which institutions the transactions could go through. It is suggested that these duties will be initially assigned to a state company, while private enterprises could be added in future 

Meanwhile, Russia is also in support of internationalizing the Chinese yuan. Russia’s President Vladimir Putin recently said in a statement that around two-thirds of the trade between his home country and China happens with the yuan and ruble.

Nations Seek Alternatives to the US Dollar 

The latest development comes as several nations, including Russia, seek alternative currency to the U.S. dollar to settle external deals following the United States and other Western economic sanctions imposed against them.

While Russia is still looking at the possibility of using cryptocurrencies for international trade settlements, last August, Iran used crypto to pay for goods imported into the country. Alireza Peyman-Pak, head of Iran’s Trade Promotion Organization (TPO), noted that cryptocurrency and smart contracts would be extensively used in foreign trade with nations that favor the initiative.