Russia is preparing to trial cross-border payments using cryptocurrency in an attempt to circumvent international sanctions. The trial, which begins next week, follows legislation passed in July that allows such transactions under an "experimental" regime overseen by Russia’s central bank.
New Law's Uncertain Implementation
The legislation does not lift the existing ban on using cryptocurrencies as legal tender within Russia but permits their use for cross-border payments. The law gives Russia’s central bank broad powers to oversee and adjust the experimental regime as needed.
Sanctions and Economic Impact
Since Russia’s invasion of Ukraine in February 2022, the country has faced over
16,500 sanctions from Western nations. These sanctions have severely impacted Russia’s economy, freezing assets and disconnecting Russian banks from the SWIFT interbank messaging system.
Experts Skeptical of Success
Experts doubt that Russia’s attempt to use crypto to bypass sanctions will be effective, citing the traceability of blockchain transactions and the potential for even stricter sanctions in response. They also question whether the crypto market has the liquidity to support large-scale evasion efforts without drawing attention from international regulators.
Read more at CoinDesk.
