🌎 Russia Begins Crypto Exchange Trials for Cross-Border Payments

Russia is set to begin trials of crypto exchanges and token transactions for cross-border payments to mitigate the impact of international sanctions. These trials, scheduled to commence on September 1, aim to use the National Payment Card System to facilitate the exchange between Russian rubles and cryptocurrencies. This initiative follows recent legislation passed by Russia’s parliament, which legalizes crypto mining and establishes a framework for testing digital tokens for cross-border payments under the supervision of the central bank.

The move comes as Russian businesses encounter increasing difficulties in paying foreign suppliers and receiving payments for exports due to sanctions. Some major Russian metal producers have already started using stablecoins for transactions with China, as traditional payment methods have become constrained.

Domestic Crypto Exchange Plans

In mid-August, reports suggested that Russia is planning to establish at least two domestic crypto exchanges. One of these exchanges may utilize the infrastructure of the St. Petersburg International Mercantile Exchange, while the other could be based in Moscow. However, details remain unclear.

National Payment Card System

The National Payment Card System, created by the central bank in 2014, operates Mir cards and Russian instant interbank payment systems. Officials selected this network for the crypto exchange trials due to its existing infrastructure, which includes interbank settlement and clearing capabilities.