Bitcoin and cryptocurrency prices have surged this year, with a critical week ahead for bitcoin’s market performance. Amid this volatility, Russia is preparing to test bitcoin and cryptocurrency exchanges to improve cross-border transactions impacted by international sanctions, according to Bloomberg sources.
Starting September 1, Russia’s National Payment Card System will be used to trial cryptocurrency transactions on exchange platforms. This move comes as Russian businesses struggle with international payments and transactions, exacerbated by recent U.S. sanctions and disruptions from Chinese banks. Russia has been cut off from the U.S. dollar-based financial system and the SWIFT network since 2022.
If the trials prove successful, Russia may permit the Moscow Exchange and the St. Petersburg Currency Exchange to develop their own crypto platforms next year. This initiative aligns with a growing trend of support for cryptocurrencies in Russia, underscored by former U.S. President Donald Trump’s proposal to establish a bitcoin strategic reserve if re-elected.
In a related development, Russia’s parliament passed laws in July legalizing crypto mining and creating a framework for testing digital tokens for cross-border payments, with President Vladimir Putin signing the bills into law on August 8. This marks a shift from Russia’s earlier stance on a potential blanket crypto ban proposed in 2022.
Credit: Forbes (Text Excluding Headline)
