In front of a legislative vote on rules pertaining to digital assets, the Russian money laundering watchdog declared on Wednesday that the nation should accelerate the development of cryptocurrency payment infrastructure.
The Russian money laundering watchdog stated on Wednesday that the country should expedite the development of cryptocurrency payment infrastructure while carefully assessing the risks involved. Russia has seen considerable delays in international trade with key trading partners like China, India, the United Arab Emirates, and Turkey as a result of local banks becoming more cautious as a result of pressure from Western regulators.
The new law will permit the use of bitcoin transactions in foreign payments to sustain commercial flows, and parliament is scheduled to review it on July 23. “This is a need for businesses, especially in cases involving sanction mechanisms, when they need to enter the international market, and it can’t always be resolved through standard methods,” said Yuri Chekhanchin, the head of the watchdog.
States like Venezuela already use cryptocurrency transactions to get around international sanctions, which has worried American politicians and brought up the matter with the Biden administration. The primary problem, according to Chekhanchin, is that certain nations have lax cryptocurrency laws. He stated that his watchdog should be able to stop these transactions when they violate Russian law. The nations he had in mind were not mentioned by name.
Russia currently forbids the use of cryptocurrencies in payments, and the new law is unlikely to change that. Prior to this, the central bank acknowledged that one of the main issues facing the Russian economy was payment difficulties. At a government meeting on the use of digital currencies on Wednesday, President Vladimir Putin also gave a speech. The public was not allowed to attend the meeting other than for his introductory remarks.
Putin applauded the central bank-backed digital currency’s experimental debut, which is an asset based on blockchain technology. The central banks of Russia and Iran are attempting to link their digital currency systems so that the two sanctioned nations can conduct bilateral business. Belarus and China are in the midst of similar talks. In some parts of Siberia, where a large number of these farms have popped up taking advantage of low local electricity prices, Putin claimed that the high energy usage of cryptocurrency mining farms posed hazards to the region’s energy sources.
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