Summary:
- New Legislation: Russian lawmakers have passed a bill allowing businesses to use cryptocurrencies for international trade.
- Implementation: The law is expected to take effect in September, with the first transactions anticipated before the end of the year.
- Context: The move aims to bypass Western sanctions imposed due to Russia’s invasion of Ukraine.
In a bold move to circumvent Western sanctions, Russian lawmakers passed a bill on Tuesday that will allow businesses to use cryptocurrencies in international trade. The legislation is part of a broader strategy to mitigate the economic impact of sanctions imposed after Russia’s invasion of Ukraine. The new law, supported by Russian central bank Governor Elvira Nabiullina, is expected to come into force in September, with the first transactions using cryptocurrencies projected to occur before the end of the year.
Nabiullina confirmed that crypto-based payments would begin before the end of 2024. This legislation aligns with Russia’s ongoing efforts to find alternative financial systems amidst growing geopolitical tensions with the U.S. and its allies. The sanctions have targeted numerous individuals and entities within Russia, severely restricting their access to global financial markets.
Other sanctioned countries have also explored the use of cryptocurrencies to bypass financial restrictions. North Korea, for example, has been accused of using crypto to fund state programs and evade sanctions. With this new law, Russia joins the list of nations leveraging digital assets to navigate around economic sanctions.
The move marks a significant development in the global use of cryptocurrencies, highlighting their potential role in international trade and finance, particularly for countries facing economic sanctions.
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