Russia considers legalizing crypto for global payments as it faces ongoing sanctions

cnbc.com:

Russia is considering legalizing the use of cryptocurrency for international payments as the country faces ongoing financial pressure from Western sanctions.

The State Duma, which is the lower house of the Russian Parliament, will on Tuesday consider a law that permits making international payments via cryptocurrencies, Elvira Nabiullina, the governor of Russia's central bank, said Tuesday.

«Today, the State Duma is considering a law that allows settlements in cryptocurrencies within the framework of an experimental regime,» Nabiullina said, speaking in the Russian Federation Council, the upper house of Russia's parliament, according to state-owned news agency RIA Novosti.

The Duma is expected to approve the law Tuesday, Reuters reported separately.

Russia's central bank is also itself looking to move money across borders using crypto, with its chief saying crypto-based payments will take place before the end of 2024.

«We are already discussing the terms of the experiment with ministries and departments, with businesses, and we expect that the first such payments will take place before the end of this year,» she said.

The Russian Embassy in London was not immediately available to comment on the country's plans to adopt pro-crypto legislation when contacted by CNBC Tuesday.

The central bank's commitment to use crypto as a method of cross-border payment marks a reversal from the regulator's previous stance on the technology.

In January 2022, the Russian central bank proposed banning the use of crypto for transactions, as well as the mining of digital currencies, citing threats to financial stability, citizens' wellbeing and monetary policy sovereignty.

It comes as growing tensions between Russia and the U.S. and its allies