Russian banks to use cryptocurrency for international payments

Russia plans to make its first international payments in cryptocurrencies by the end of this year to counter the challenges posed by Western sanctions, according to the central bank governor, Elvira Nabiullina. The move comes as local banks face increasing delays in processing payments with major trading partners due to cautiousness influenced by Western regulators.

A new law, expected to be approved by the lower house of parliament, will allow Russian companies to use cryptocurrencies for international transactions. The law is anticipated to come into effect in the autumn. Nabiullina stated that discussions with ministries, agencies, and businesses are already underway, and the central bank is prepared to be flexible in implementing the new regulations.

Currently, cryptocurrencies are not permitted for payments within Russia. The introduction of this law aims to address the significant delays in international payments, which have become a major challenge for the Russian economy. The central bank emphasised that the risk of secondary sanctions has complicated payments for a wide range of imports, resulting in longer supply chains and increased business costs.