Russian lawmakers have recently passed a groundbreaking law that allows the use of cryptocurrency in global trade settlements. This decision was made in response to the financial pressure Russia is facing from Western sanctions. The State Duma, the lower house of the Russian Parliament, approved the legislation on Tuesday, marking a significant step for the country’s financial sector.
Anatoly Aksakov, the head of the Duma, described this law as historic for the financial industry. The approval of this law signals a shift in Russia’s approach towards cryptocurrencies. Previously, Russia did not allow such freedom in transactions, but the increasing use of crypto in commerce made it impossible to ignore. Mati Greenspan, CEO of Quantum Economics, emphasized that Bitcoin transactions cannot be controlled by governments or banks, making it a practical choice for cross-border trade.
The price of Bitcoin has been on the rise, increasing by over 100% in the last year. This surge in value is attributed to the growing anticipation of the approval of the first U.S spot Bitcoin exchange-traded funds and the upcoming halving event of Bitcoins. Currently, one Bitcoin is priced at $66,000, marking a significant increase from the previous year.
The adoption of cryptocurrencies for cross-border payments is part of Russia’s strategy to counter Western sanctions. By incorporating cryptocurrencies into its global payment systems, Russia aims to bypass challenges posed by the SWIFT system and reduce its reliance on the US dollar and Euro. The new law also grants the Central Bank of Russia the authority to launch a pilot project on the use of cryptocurrencies in cross-border payments, further strengthening Russia’s position in global trade.
In addition to adopting cryptocurrencies, Russia is leading the way in promoting the BRICS Bridge project. This initiative, which involves Brazil, India, China, and South Africa, focuses on facilitating the use of local currencies in trade among these countries. The ultimate goal of this project is to reduce the influence of Western financial networks and enhance economic cooperation within the BRICS union.
Overall, the approval of the new law allowing cryptocurrency use in global trade settlements represents a significant milestone for Russia’s financial sector. By embracing cryptocurrencies and spearheading initiatives like the BRICS Bridge project, Russia is taking proactive steps to overcome economic challenges and strengthen its position in the global economy.
