• Russia is taking its crypto mining to the next level by allowing for foreign payments in cryptocurrencies.
• The Bank of Russia has announced a pilot program that will allow cryptocurrency usage in export-import negotiations.
• Private enterprises may be included in the program in the future, but only businesses with ties to the state can currently participate.
Russia Taking Crypto Mining to Next Level
Russia is taking crypto mining on a whole new level. Following the invasion of Ukraine in 2022, international sanctions have been imposed on the country. Now, the country’s central bank is reportedly planning to establish new organizations to mine crypto assets and settle foreign payments, as reported by local media outlets.
Legislation Allowing Cryptocurrency Usage
Officials at Russia’s central bank were cited this week by TASS (the state news agency) as saying that they are working on experimental legislation that would allow the usage of cryptocurrencies in export-import negotiations. This pilot program will permit cryptocurrency usage for cross-border payments, though trading and payments within Russia remain illegal according to Russian law.
Sanctions Imposed After Invasion of Ukraine
Russia’s trade with the West has been hurt by sanctions over its invasion of Ukraine, but connections with China have strengthened since then. Elvira Nabiullina, governor of the Bank of Russia made an announcement in parliament (the State Duma) regarding this pilot program which would allow cryptocurrencies to be used in exterior settlements.
Crypto Mining Groups Formed
Nabiullina also stated that legal entities in Russia will be able to form specialized crypto mining groups and carry out permitted actions – though these are still being refined at present and only businesses with ties to the state are allowed to take part thus far. Private enterprises may be included into this program later down line however.
The Russian Government’s stance on cryptocurrency remains lukewarm at best despite President Vladimir Putin signing a law restricting bitcoin use last July – demonstrating just how difficult it can be for digital assets such as Bitcoin or Ethereum reach full adoption across countries like Russia where there is government interference at play..