Russia's Central Bank Admits Using Crypto to Avoid Western Sanctions

Todaysgist.com, Jakarta – Russia's central bank says it should use crypto and other digital assets to facilitate payments with foreign partners to counter Western sanctions imposed over the Ukraine conflict.

Russia's booming trade with China, India, the United Arab Emirates, Turkey and other countries that have not imposed sanctions has suffered a major setback in recent weeks.

Recent Western sanctions have targeted major Russian financial institutions, including the Moscow Stock Exchange and Russia's domestic alternative to the global payments system SWIFT.

Russian central bank governor Elvira Nabiullina acknowledged that payment issues are one of the main challenges for the Russian economy. Nabiullina said Russia's business partners in various countries are under pressure.

“New financial technologies create opportunities for schemes that have never existed before. This is why we are softening our stance on the use of cryptocurrencies in international payments, allowing the use of digital assets in such payments,” Nabiullina was quoted as saying by Yahoo Finance, Friday (5/7/2024).

Nabiullina also said a new global payment system that does not involve Western institutions will emerge gradually because many countries feel vulnerable using only one international payment system and no other alternatives.

Nabiullina said Russia and other countries from the BRICS group of nations were discussing the BRICS Bridge payment system, which would be designed to bridge the financial systems of member states.

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