BREAKING: Bank of Russia to use Bitcoin and crypto in cross-border payments

• Cryptocurrency mining is soon to be legalized in Russia, come January 2023.
• Russia’s use of digital currencies is an experiment under close supervision 

The sanctions that preceded Russia’s decision to invade Ukraine have led the country into a tight economical corner. In an attempt to reclaim its economical position and elevate its global strengths, the country is counting on digital currencies. 

As revealed by Russia’s lower House of Parliament, a bill intended to create space for a more domestic cryptocurrency market is already underway. With over three government participants authoring the bill, it is evident that Russia is looking to adopt the fastest route out of the global economic recession. 

Additionally, on the 1st of January 2023, the legislation will look to legalize cryptocurrency mining, and sale of digital currencies mined within the aforementioned date. The bill reads: 

…Digital currency obtained as a result of mining can be disposed of by the person who carried out the mining of this digital currency on the condition that Russian information infrastructure is not used in conducting transactions with it, with the exception of cases of transactions carried out in accordance with the established experimental legal regime…

Cryptocurrency miners and their labor is also taken into significant consideration, and as the bill notes, miners are hopeful that the country welcomes them with open arms. As such, it is necessary for the bill to pull through. 

While Russia opens its doors to crypto mining, it rejects cryptocurrency usage 

The Ministry of Finance has also shown support for the bill, as disclosed by Anatoly Aksakov, Duma Financial Markets Committee. He added that his own committee has already taken the bill on serious consideration.

In his words ;

“Large miners who have devoted their lives to this are now turning to us with a request to introduce their activities into the legal space so that they work normally, pay taxes and not feel fear of the structures that check them, including law enforcement agencies. Therefore, it is obvious that the law is very necessary,”

Meanwhile, there is still massive pushback from the bank of Russia. 

In a recent press conference held on the 16th of December, the governor of the bank Elvira Nabiullina, made known that cryptocurrencies will only be allowed as an experiment. 

Cryptocurrency transactions will only be permitted on the condition that an “authorized organization” is behind the move.

The Governor explains the reason for the strict policy, citing the risks that digital currencies pose to investors, as a key factor driving the country’s decision. 

Can Russia overturn the crypto market?

The Crypto market has barely had any movement in the few days. Bitcoin has stagnated at around $16k without any major movement for some time now. Russian adoption could just be the answer to the market even with the difference in opinions among pundits. If Russia adopts Bitcoin, as they experiment with the use of digital currency, it could be a huge boost for the coin.

At the time of press, BTC is trading at $16,857 a slightly over 1 percent increase in the last day. For the last 7 days, the coin had shed almost 5 percent which mainly happen four days ago. The new year might just be the start BTC is looking for.