TechFlow news, according to a recent report by blockchain analytics firm Chainalysis, Russia is building financial infrastructure to use cryptocurrencies for international trade and circumvent Western sanctions.
The report highlights that recent legislation passed by the Russian parliament legalizes cryptocurrency mining and permits the use of digital assets for international payments. These laws were signed by President Putin on August 8, with a pilot program for crypto payments set to begin in September this year.
The Central Bank of Russia (CBR) will oversee the pilot program for cross-border cryptocurrency transactions and is currently testing the digital ruble, expected to launch in 2025.
Valerie Kennedy, Head of Investigations at Chainalysis, stated that the CBR is leading efforts to integrate cryptocurrencies into Russia's financial system for cross-border payments. The report indicates that centralized cryptocurrency exchanges within Russia could be used to facilitate such payments, including platforms like Garantex.
Chainalysis also notes that Russia is exploring other methods to bypass Western sanctions, including blockchain initiatives with BRICS nations and a potential collaboration with Iran to launch a gold-backed stablecoin.
