Russia is considering Bitcoin for international trade in 2023: Report
- Russia local media reported that officials had confirmed discussions over Bitcoin for cross-border trade.
- The report cites officials from the Ministry of Finance and the State Duma among other government agencies.
- Bitcoin would be used for international trade by early 2023, the officials noted.
As per local news agency Izvestia, Russian government officials from the Ministry of Finance and the State Duma have confirmed the development.
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Tax authorities, the Central Bank and the Ministry of Economic Development are also involved in discussions, the media outlet said citing sources.
Consideration for crypto as an alternative payment method for businesses comes just days after the Ministry of Finance and Russia’s Central Bank highlighted the likelihood of such a move being taken.
There are also discussions on the viability of this proposal within the Federal Tax Service and the Ministry of Economic Development. Part of the debates are around classification of bitcoin as property and the implications of this around taxation.
Russia’s option for cross-border trade
Specifically, Izvestia mentions that Ivan Chebeskov, the Director of the Financial Stability Department at the Ministry of Finance, talked about the move to have crypto used for cross-border transfers in 2023. Anatoly Aksakov of the State Duma committee reportedly confirmed the timeline.
According to Chebeskov, the financial markets department is working on “a number of legislative initiatives” related to the use of the cryptocurrencies in international trade. However, the plans are not formally presented to the government.
But once formalized, Chebeskov noted, Russia will allow businesses the option of choosing whether they’d like to use Bitcoin or other permitted crypto for cross-border trade.
Russia has tinkered with the idea of using bitcoin before (check here also) and has a roadmap for the regulation of crypto in the country, even though it does not currently allow crypto exchanges to operate in the country. Indeed, it is proposed that the use of bitcoin for international trade, if given a nod, will be handled via the Moscow and St. Petersburg stock exchanges.
As previously highlighted by Invezz, a growing number of Russians have allegedly turned to crypto amid the impact of the sanctions imposed by the West and the US following Russia’s invasion of Ukraine.