Private Firms in Russia May Soon Be Able to Use Crypto for International Settlements

The Bank of Russia is considering allowing private companies to exchange cryptocurrencies under international agreements within the framework of an experimental legal regime, Central Bank Deputy Governor Alexei Guznov said. This mechanism would have to be tested initially in companies with state participation.

The head of the regulator, Elvira Nabiullina, said that special authorized organizations will be created to deal with the exchange and sale of cryptocurrencies for international agreements. They are still studying how these organizations will operate and who will control them, as well as which banks will work with them.

Russian Prime Minister Mikhail Mishustin has requested the development of a plan to use cryptocurrencies in export deals by the end of 2022. However, the proposed plan has not yet been submitted to the State Duma due to disagreements over who will be responsible if cryptocurrencies are used illegally.

However, as sanctions were imposed by western countries, the Russian state is now feeling more pressure to deal with cryptocurrencies as a way to keep reducing the impacts of these sanctions. The Bank of Russia move could have a profound impact on cryptocurrency markets in a few ways, resulting in:

• Increased adoption: Allowing private companies to use cryptocurrencies for international agreements would increase cryptocurrency adoption in Russia, which could lead to wider acceptance and use of cryptocurrencies in the country.
• Increased liquidity: Allowing private companies to use cryptocurrencies for international settlements would increase demand for cryptocurrencies, potentially leading to increased liquidity and trading volumes in the market.
• Increased Legitimacy: The fact that the Bank of Russia is considering allowing private companies to use cryptocurrencies for international settlements would provide a level of legitimacy to the cryptocurrency market, which could attract more institutional investors and traditional financial institutions to invest in cryptocurrencies.
• Price Rising: If the news of the Bank of Russia's decision to allow private companies to use cryptocurrencies for international deals is well received by the market, it could lead to a rise in cryptocurrency prices as investors become more bullish about the future of cryptocurrencies. in Russia.

Overall, the positive impact on the cryptocurrency market would depend on how the experimental legal regime is implemented and the level of success of testing in state-owned enterprises. However, cryptocurrency analysts are optimistic that the move could help other countries follow suit, paving the way for more states to take the same action.