Due to sanctions:

Russian central bank introduces crypto payments

Russia has suffered delays in international payments due to the sanctions following the invasion of Ukraine.

(Bild: stock.adobe.com)

Russia wants to introduce the first international payments in cryptocurrencies this year. "We are already discussing the terms of the experiment with ministries, authorities and companies and assume that the first such payments will take place by the end of this year," said Elvira Nabiullina, head of the central bank.

Parliament is expected to pass a corresponding law in the near future. It is intended to allow Russian companies to use cryptocurrencies in international transactions. The new law is expected to come into force in the fall.

Problems in payment transactions
Russia has had to put up with considerable delays in international payment transactions with important trading partners. Under pressure from Western supervisory authorities, many banks have become more cautious in their dealings with their Russian business partners. The reason for this is the sanctions due to the Russian war against Ukraine.

Cryptocurrencies are currently not permitted for payments within Russia. The new law aims to change this. The regulatory authority is prepared to "show flexibility", said Nabiullina.

Imports will be made more difficult
The central bank sees the delays in payment transactions as a major challenge for the economy. "The risks of secondary sanctions have increased," said Nabiullina. "They make payments for imports more difficult, and this affects a wide range of goods." She pointed out that companies are succeeding in finding solutions. But the difficulties were leading to longer supply chains and rising costs.

The Russian central bank recently raised its key interest rate in the face of rising inflation. Last Friday, the monetary authorities raised the key monetary policy rate by two full points to 18 percent. This is the highest level since April 2022. "We are not ruling out further increases," said central bank governor Elvira Nabiullina after the interest rate decision.