Bank of Russia Reportedly Plans To Create Entities for Crypto Mining And Cross-Border Settlements
Russia's central bank is planning to establish new organizations for cryptocurrency mining and cross-border payments settlement
Because Bitcoin
April 20, 2023
In an effort to alleviate the impact of global sanctions since the invasion of Ukraine in 2022, Russia's central bank plans to establish new entities for crypto mining and cross-border settlement, according to local media reports. Cointelegraph has reported that the Bank of Russia aims to conduct a pilot program allowing cryptocurrency to be used in external settlements, while maintaining its stance on the non-use of cryptocurrency within the country. The plan includes the creation of "special authorized organizations" for crypto mining and international settlements, according to the bank's head, Elvira Nabiullina. Bank of Russia deputy chairman Aleksey Guznov stated that discussions are ongoing with the government on the scope of activity for the proposed companies.
Gabby Kusz, CEO of the Global Digital Asset & Cryptocurrency Association, said that Russia and other countries are realizing that cryptocurrency represents a fundamental change in the way individuals and organizations exchange value.
According to Bank of Russia's Deputy, Alexey Guznov, discussions are underway with the government to determine the criteria for participating in the crypto experiment, including the type of organizations that can participate, their business models, and the banks they will use. During the initial phase of the experiment, government-backed companies are expected to participate.
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