Bank of Russia to set up entities for crypto mining and cross-border settlement: Report
Russia is taking further steps to mitigate global sanctions in place since the invasion of Ukraine in 2022. According to local media reports, the country's central bank plans to create new institutions to mine crypto assets and settle international payments.
In a meeting in the State Duma — one of the chambers of the Russian parliament — the head of the central bank, Elvira Nabiullina, announced that the Bank of Russia would allow cryptocurrency to be used in external settlements in a pilot program. The move, however, does not signal a change in the country's crypto environment:
“We adhere to the same position that within the country, cryptocurrency […] Should not be used, and for external settlements, we assume that this is possible in the form of an experiment. This bill is also being prepared in the form of an experimental legal regime,” Nabiullina said according to a translated summary of the report.
The plan includes the creation of "special authorized organizations" for crypto mining and international settlements — including transactions involving cryptocurrencies and other digital assets, stated Nabiullina, a former economic adviser to Russian president Vladimir Putin.
Bank of Russia deputy chairman Aleksey Guznov told journalists that the bank is negotiating with the government on how the companies will operate. “Currently, a discussion is underway with the government so that their scope of activity is clear," Guznov said, adding that private companies may be able to contribute to those initiatives in the future.
In a statement to Cointelegraph, Gabby Kusz, CEO of the Global Digital Asset & Cryptocurrency Association, noted that Russia, China and other countries are realizing "Crypto is not a new financial product,
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