Russian Central Bank Considering Bitcoin Payments For International Settlements

After Russian President Vladimir Putin openly questioned the central bank’s suggestion to ban cryptocurrency, the head of the Russian Central Bank, Elvira Nabiullina, suggested considering Bitcoin payments for international settlements.

Russian Central Bank Considering Bitcoin Payments For International Settlements 1

According to a report from state-run media outlet Kommersant, Elvira Nabiullina, the head of the Russian Federation’s Central Bank, recently attended the St. Petersburg Economic Forum (SPIEF), where she commented on Russia’s use of bitcoin and other cryptocurrencies for international trade.

“Our position is that cryptocurrency should not be used as a means of calculation within the country… As for use in international settlements, if it does not penetrate the Russian financial system, it is possible,” Nabiullina told reporters during the event.

Prior to Nabiullina’s remarks, Ksenia Yudaeva, Russia’s First Deputy Chairman of the Central Bank, claimed that Russia does not object to the use of bitcoin-like payments “in international transactions and international financial infrastructure.”

The central bank had previously suggested a ban on cryptocurrency mining and trade in January. Following this statement, Russian President Vladimir Putin openly questioned the central bank’s findings, claiming that the country had a “competitive advantage” in the mining sector and asking that they reconsider.

The Russian government has presented a bill to regulate bitcoin and the broader cryptocurrency ecosystem in response to Putin’s request for reconsideration. In the same month, the Ministry of Finance presented an amended version of the bill aimed at regulating the ecosystem appropriately.

As a result, just as the Russian government and monetary authorities are divided on the issue, so are those in positions of authority inside those agencies.

Indeed, Denis Manturov, the Russian Federation’s Minister of Industry and Trade, recently stated, “The question is when it will happen, how it will happen, and how it will be regulated [cryptocurrencies].” Now both the Central Bank and the government are actively engaged in this.”

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