Russia will launch cross-border crypto payments before end-2024

MOSCOW: Russia will carry out its first international payments in cryptocurrencies before the end of this year in order to overcome difficulties created by Western sanctions, the central bank's governor, Elvira Nabiullina, said on Tuesday (Jul 30).

Russia has faced significant delays in international payments with major trading partners after local banks, under pressure from Western regulators, became more cautious when dealing with their Russian counterparts.

The lower house of parliament is expected to approve the law allowing Russian companies to use cryptocurrencies in international transactions on Tuesday. The new law is expected to come into force this autumn.

"We are already discussing the conditions of the experiment with ministries, agencies and businesses, and we expect that the first such payments will take place by the end of this year," Nabiullina said, adding that the regulator was ready "to show flexibility."

Cryptocurrencies are currently not allowed for payments within Russia, and the new law aims to change that. The central bank said that delays in payments have become a major challenge for the Russian economy.

"The risks of secondary sanctions have grown. They make payments for imports difficult, and that concerns a wide range of goods," Nabiullina said.

She noted that businesses are managing to find solutions, but difficulties are leading to longer supply chains and rising costs.