Russian lawmakers have passed a bill that would allow companies to use Bitcoin and other cryptocurrencies in international trade, Russian media reports said in a landmark legislative move. replyThe move is part of Russia’s strategy to circumvent Western sanctions imposed after the invasion of Ukraine. The new law, due to come into force in September, aims to address delays in cross-border payments, particularly with major trading partners such as China, India and the UAE.
Breaking News: 🇷🇺 Russian lawmakers pass bill allowing companies to use #Bitcoin Cryptocurrencies in international trade — Reuters pic.twitter.com/yFExWcIG9k
— Bitcoin Magazine (@BitcoinMagazine) July 30, 2024
The bill’s sponsor, Central Bank Governor Elvira Nabiullina, announced that the first cryptocurrency transactions will take place by the end of the year. The central bank will create an “experimental” infrastructure for these payments, though details have yet to be finalized.
“The risk of secondary sanctions is increasing,” Nabiullina said. “Sanctions will make it harder to pay for imports and will affect a wide range of products.”
The law also includes restrictions on crypto mining and the circulation of other digital assets, but maintains the ban on crypto payments in Russia. The Central Bank highlighted that delayed payments led to an 8% drop in Russian imports in the second quarter of 2024.
Despite efforts to transition to trading partner currencies and develop alternative BRICS payment systems, many transactions still rely on dollars and euros via the SWIFT system, exposing them to the risk of secondary sanctions. Nabiullina stressed that these sanctions have complicated import payments, stretched supply chains and increased costs.
The move by Russian lawmakers aims to ease the economic challenges posed by sanctions and facilitate international trade. By passing the bill, “we are taking a historic decision in the financial sector,” Chairman of the Duma, Russia’s lower house of parliament, Anatoly Aksakov, reportedly told lawmakers.
