Russia's central bank has advised businesses to explore alternative solutions, including cryptocurrencies and other digital assets, to facilitate payments with foreign partners amid escalating Western sanctions triggered by the war in Ukraine.
Russia's Central Bank Advises Businesses to Use Crypto
According to Reuters, trade between Russia and countries like China, India, the UAE, Turkey, which remain unaffected by sanctions, has faced significant disruptions recently.
These sanctions have specifically targeted major Russian financial entities like the Moscow Stock Exchange and Russia's domestic payment system, similar to SWIFT.
Elvira Nabiullina, the central bank governor, acknowledged that payment issues are critical challenges for Russia's economy. The governor emphasized the role of new financial technologies in enabling previously unavailable schemes, prompting a softened stance on using cryptocurrencies for international payments.
She noted the adaptability of businesses in finding solutions independently amid pressures, highlighting their innovative approaches.
New Global Payment System
Nabiullina expressed confidence in the emergence of a new global payment system outside Western institutions, reflecting growing concerns over dependency on a single international payment framework lacking alternatives.
Andrei Kostin, head of VTB bank, stressed the sensitivity of information about facilitating international payments, suggesting it should be classified as a state secret due to its strategic implications amidst heightened surveillance from Western counterparts.
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