The Central Bank of Russia is urging businesses to explore alternative methods for cross-border payments, including cryptocurrencies and digital assets, to mitigate the impact of Western sanctions. These sanctions were imposed after Russia’s invasion of Ukraine in February 2022, posing significant challenges for Russian enterprises in international payment settlements. Central Bank Governor Elvira Nabiulina emphasized the importance of adopting cryptographic solutions to overcome these obstacles.
Nabiulina noted that Russian businesses face difficulties in conducting cross-border transactions, even with partners from countries that have not imposed sanctions, such as India, China, the UAE, and Turkey. The restrictions on major financial institutions like the Moscow Stock Exchange and SWIFT complicate international payments.
During a speech at a financial conference in Saint Petersburg, Nabiulina pointed out that new financial technologies have provided opportunities previously unavailable, leading to a more relaxed stance on using cryptocurrencies for international payments. She mentioned that businesses have become innovative and found ways to cope with these restrictions, often without notifying the authorities.
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Some Russian companies have already begun using cryptocurrencies to transact with international partners, especially in China. Nabiulina 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.
