Russian lawmakers have reportedly passed a bill that will enable the nation to use cryptocurrency in international trade.
Reuters reports that the law is expected to take effect in September.
Russian Central Bank Governor Elvira Nabiullina says the first crypto transactions will likely happen within the year.
The law will only allow businesses to use crypto in international trade but the ban on cryptocurrency payments inside Russia still stands.
Russia is facing Western sanctions for its invasion of Ukraine and banks in countries it is trading with are cautious amid threats of secondary sanctions, causing payment delays.
Nabiullina says the delays lead to longer supply chains and increased costs. The situation is already hurting the Russian economy. In the second quarter of 2024, the nation’s imports were down by 8%.
“The risks of secondary sanctions have grown. They make payments for imports difficult, and that concerns a wide range of goods.”
Many international payments still use the dollar and euro and go through the international SWIFT system.
In June, Russian President Vladimir Putin said that BRICS, the intergovernmental organization consisting of Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia and the United Arab Emirates, is working on a fully digital payment system that is independent of the US dollar.
“Within BRICS, we’re working on shaping an independent payment system, free from political pressure, abuse and external sanctional interference.”
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
The post Russia To Permit Use of Crypto for Global Payments Amid Western Sanctions: Report appeared first on The Daily Hodl.
