As sanctions against Russia for its actions against Ukraine result in tighter controls on its international payment systems, the Russian Ministry of Finance recognizes the growing significance of cryptocurrencies within the transcontinental nation.
The development was reported on in an official report on Monday by the Russian news agency TASS. Ivan Chebeskov, the Director of the Financial Policy Department at the Finance Ministry, is quoted in the report as having disclosed the development in a recent interview.
According to Chebeskov, the Ministry of Finance is more open to cryptocurrencies than the Central Bank of Russia.
He noted that the Ministry’s desire to create a more conducive framework for digital assets demonstrates the disparity between the two agencies’ attitudes toward the asset class. This should encourage a less restrictive circulation of cryptocurrencies within Russia.
Chebeskov went on to say that the Ministry believes Russia requires a properly developed local cryptocurrency infrastructure. He stated that this would aid in the implementation of better consumer protection measures. A proper framework will also promote better oversight in the cryptocurrency industry to prevent illegal usage.
With the digital ruble, Russia hopes to eliminate the need for SWIFT.
Despite Western sanctions imposed as a result of Russia’s invasion of Ukraine, the Russian government’s adoption of cryptocurrency has been surprisingly slow. Although the Central Bank appears to be taking a more progressive approach to digital assets, it has not fully welcomed the industry.
The Russian Finance Ministry, on the other hand, is advocating for a less restrictive framework. Regardless of its less progressive stance on cryptocurrencies, Russia’s central bank has gone all-in on its CBDC plan.
In 2023, the Bank of Russia intends to conduct actual client tests of its digital ruble protocol. An August report revealed this goal. In addition, the central bank plans to connect all Russian banks to the digital ruble by 2024.
Russia is attempting to eliminate the need for the SWIFT payment system, which has been prohibited. The digital ruble will assist the country in making international settlements independent of a payment system controlled by the West.
Meanwhile, the European Union revealed plans last month to restrict crypto payments from Russia to European crypto wallets.
