Key facts:
Russian Central Bank agrees to regulate bitcoin as long as it does not enter the financial system.
Even though the central bank rejects bitcoin, it seems to give in to the current lockdown.
The Russian Central Bank’s stance on bitcoin (BTC) and cryptocurrencies appears to be softening. The head of the financial entity, Elvira Nabiullina, said these days that she agrees that crypto assets be used for the payment of international commitments.
Nabiullina spoke at the St. Petersburg economic forum on June 16, explaining that they still maintain their position of not allow the use of bitcoin and cryptocurrencies as a means of payment within the country.
“As for the use in international agreements, if it does not penetrate the Russian financial system, then it is possible,” said the official to a local media.
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Nabiullina’s words were ratified by Ksenia Yudaeva, first vice president of the Russian Central Bank, assuring that they are not opposed to their use for “international transactions”.
What was stated by the Russian official is in accordance with what was reported by the Russian Ministry of Finance, last May, when they indicated that they were discussing the possibility of use digital assets to make international paymentsdue to the liquidity “limitations” faced by its traditional payment system, a fact reported by CriptoNoticias.
Something similar was also suggested by Pavel Zavalny, head of the Energy Committee, to accept cryptocurrency for the sale of energy resources, such as gas and oil.
In that sense, there seems to be a tacit agreement among Russian officials regarding the possible use of pioneering cryptocurrencies to evade international sanctions. Nabiullina sucks to reach a kind of consensus between the parties.
Change of posture, to some extent
Surely this shows a change in the position of the Russian regulatory body, in comparison, to what he said at the beginning of this year. CriptoNoticias reported that the bank considered bitcoin and cryptocurrencies to be “significant threats to the well-being of Russian citizens and the stability of the financial system.”
Among other aspects that they saw negative about crypto assets, is that, according to them, they had the characteristics of a financial pyramid and that limited the sovereignty of Russia’s monetary policy.
The statements of the issuing entity led to a controversy with the Ministry of Finance and even with members of the State Duma (the legislators), who support the bill prepared by Finance. Until now, the central bank had maintained a more radical stance against this project.
Bitcoin to evade Western sanctions
It is important to take into account, that the proposal to ban bitcoin was prior to the Russian invasion of Ukraine and since that time, much water has passed under the bridge. The Russian war action brought with it a series of economic sanctions from the United States and Europe so that the Eurasian giant would not use bitcoin.
There was even a debate about what role bitcoin could play as a means of bypassing economic measures. Something that the central bank still views with suspicion despite Nabiullina’s recent statements, as this medium has reported on several occasions.
Matthew Sigel, head of digital asset research at VanEck, suggested that Russian millionaires could circumvent financial blockades using decentralized cryptocurrency exchanges to move their fortunes out of Russia, through asset investments or the purchase of goods and services. Something that it hasn’t happened so faras indicated by most blockchain analysis companies.
For his part, financial expert Mati Greenspan, CEO of Quantum Economics, stated that sanctions could not prevent negotiations between parties that use Bitcoin. Furthermore, he believes that big capitalists can protect themselves from sanctions by keeping their wealth in bitcoin.
While everything indicates that the measures for the use of bitcoin in the country are becoming more flexible, the discussion on the regulation of the cryptocurrency market and Bitcoin mining by order of Russian President Vladimir Putin continues.
Putin, who sees certain positive aspects in bitcoin, asked his ministers to continue the discussion on the subject and reach a unanimous decision among all the parties involved.