President Putin and several Russian government officials favor the legalization of cryptocurrencies in the national monetary program. The Eurasian country seeks to accelerate the legal adoption of crypto assets to fight Western restrictions through this move.
Alexey Moiseev, the Russian deputy finance minister, recently said that the Eurasian country has been in talks with many allied nations. They plan to launch payment platforms that do not use fiat currencies like the US dollar and the euro but stablecoins.
According to Moiseev, they would deliver crypto resources that are mutually acceptable and usable on those platforms. He said they were establishing those clean houses with the friendly nations of Russia.
The Russian Government Is More Open to Using Cryptocurrencies
Since the conflict with Ukraine began, Russia has made some progress in remaining more open to cryptocurrencies. That has represented a controversial challenge, as it opposes the defiant position of the Central Bank of Russia. Besides, it has made the United States and the European Union react by imposing sanctions.
When creating those platforms, the position of the Bank of Russia changed positively through the reassessment of its policies. They incorporated banking institutions to work with them, the largest Sberbank loan provider to register information, and managers of factual methods.
Prime Minister Mikhail Mishustin, the Ministry of Finance, and the Russian House of Representatives also favor the legalization of cryptocurrencies in the national monetary program. In addition, Russian President Vladimir Putin has supported the cryptocurrency mining sector at the local level.
Russia Accelerates the Adoption of Cryptocurrencies to Fight Western Sanctions
This move toward payment with stablecoins occurred four months after the country scheduled the legalization of cryptocurrencies as payment. However, the Russian government is seeking to accelerate the legal adoption of crypto assets as quickly as possible.
Russia is the primary engine in issuing cryptocurrencies to fight Western restrictions, exploiting higher tax revenues from those using, investing, and mining them.
According to Bloomberg, Russians could own USD 200 billion worth of cryptocurrencies, 12% of the industry capitalization in February. In April, Russian Prime Minister Mikhail Mishustin confirmed that Moscow citizens held up to USD 130 billion in crypto assets.
Cryptocurrencies are increasingly relevant in those countries affected by the sanctions imposed by the United States and the European Union. For example, many Russians resorted to those assets to buy products and pay for services, as they do not require the approval of a central bank or government.
In the case of Russia, they plan to use stablecoins to avoid using fiat currencies like the US dollar and the euro. The latter comes from the countries that have subjected them to economic restrictions after the conflict with Ukraine.
Meanwhile, Bitcoin (BTC) is trading at around USD 19,291 and has accumulated a 2.9% gain over the last 24 hours. While its daily trading volume is above USD 29.38 billion, its market capitalization is about USD 369.32 billion, according to CoinGecko.
By Alexander Salazar
