According to official media reports, Russia is considering using stablecoins for international payments.
According to a recent report from the official Russian publication “Izvestia,” Russia is seeking to legalize the use of stablecoins for cross-border payments.
The report did not mention what type of stablecoins the Russian government is considering.
Alexey Guznov, Deputy Chairman of the Central Bank of Russia, told “Izvestia” that proposals for the legalization of stablecoins have been developed and discussed since 2023.
He said that stronger regulations may be necessary to protect national interests.
As Guznov put it, “The understanding is still forming, and I hope that it will become the text in the near future.”
Alexander Murychev, Executive Vice President of the Russian Union of Industrialists and Entrepreneurs (RSPP), told “Izvestia” that stablecoins will not only increase liquidity in the market, but will also thrive as a settlement tool for other BRICS countries.
The BRICS countries are an economic alliance between several countries, including Brazil, Russia, India, China, and South Africa.
In March 2024, Russian President Vladimir Putin signed a law allowing the use of “digital financial assets” (DFA) – or digital representations of rights to a contract that can be exchanged – for international payments.
Murychev stated that companies have encountered difficulties in using DFA due to the risk of secondary sanctions.
However, Natalya Milchakova, Chief Analyst at Freedom Finance Global, told the publication that these companies will not encounter such troubles with stablecoins, as they allow for settlements with sanctioned individuals without the fear of secondary sanctions.
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