The Russian central bank has urged businesses to explore alternative methods of cross-border payments, including cryptocurrencies and digital assets, to mitigate the impact of Western sanctions.
These sanctions were imposed following Russia’s invasion of Ukraine in February 2022, which has posed significant challenges for Russian businesses in international payment settlements. Central Bank Governor Elvira Nabiullina emphasized the importance of adopting cryptographic solutions to overcome these obstacles.
Nabiullina noted that Russian businesses face difficulties in conducting cross-border transactions, even with partners from countries that have not implemented sanctions, such as India, China, the United Arab Emirates, and Turkey. Sanctions on major financial institutions, such as the Moscow Stock Exchange and SWIFT, have made international payments complex.
Speaking at a financial conference in St. Petersburg, Nabiullina pointed out that new financial technologies provide opportunities that were previously unavailable, leading to a more lenient stance on using cryptocurrencies for international payments. She mentioned that businesses have become innovative and have found ways to cope with these restrictions, often without notifying authorities.
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Some Russian companies have already started using cryptocurrencies to transact with international partners, especially in China. Nabiullina also revealed that Russia and other BRICS countries – Brazil, India, China, and South Africa – are discussing the creation of a new payment system that bypasses Western institutions. She acknowledged the challenges and potential disruptions from Western countries and noted that creating such a system would take time.
