The Central Bank of Russia has decided to use cryptocurrencies for cross-border payments in trials with private companies. According to news.

bitcoin. com, the Central Bank of Russia will conduct the trials in question under a special legal regime that’s currently under development. CBR representatives cited by the same source revealed that the pilot project will be carried out with interested companies but did not specifically name any market participants that will join in.

Even though the central bank initially opposed the legalisation of decentralised cryptocurrencies, its stance has changed in the context of Western sanctions. At the same time, Russian government institutions have been working to expand the regulatory framework for digital financial assets in order to cover decentralised cryptocurrencies. In September 2022, according to currency.

com, Russia’s Deputy Minister of Finance, Moiseev, admitted that the current geopolitical landscape has changed Russia’s view on cryptocurrencies. He also revealed that both the ministry and the bank had agreed on the impossibility to perform without cross-border settlements in cryptocurrency. Moiseev highlighted the importance of enabling local crypto services in Russia, noting that many Russians rely on foreign platforms to open a crypto wallet.

He said that the necessity for doing it in Russia comes from the assurance that the involved entities will be supervised by the central bank. This would prompt them to comply with anti-money laundering (AML) and Know Your Customer (KYC) regulations. Russia’s efforts to find a legislative option for crypto international trade In October 2022, a representative of Russia’s Ministry of Finance revealed that the country is seeking a non-restrictive policy for using Bitcoin and crypto in international trade.

The Ministry of Finance of the Russian Federation planned to let any industry in the country to accept Bitcoin and cryptocurrencies for international trade without any restrictions, according to a report from local media outlet TASS. However, though the ministry intended to offer a non-restrictive flow for the acceptance of Bitcoin and cryptocurrencies, the Bank of Russia had a different opinion at the time. According to the ministry, the country needs to implement a crypto infrastructure in order to protect the interests of citizens and in order to be able to control when digital currency is used legally and when not.

The central bank will reportedly begin testing a digital ruble sometime in April 2023. The exchange of the digital ruble for foreign currencies and the opening of digital wallets to non-residents is expected to materialise in 2024. .