Russia Will Use Bitcoin For Transactions

Russian Ministry of Finance plans to give permission to industry players to accept Bitcoin (BTC) and cryptocurrencies as a means of unlimited international trade transactions. Director Ministry of Finance's Department of Financial Policy, explained that Russia will allow settlement of international transactions using crypto assets for all industries without restrictions.

Although Russian Ministry of Finance intends to allow unlimited acceptance of BTC and cryptocurrencies, Bank of Russia has not said same. Central bank of Russia chose to create a full infrastructure for circulation of central bank digital money.

While Ministry of Finance takes a local approach through regulation of crypto assets, Russia's central bank is eyeing broader regulatory action. Ministry of Finance has two main functions related to digital asset regulation for international payments. Ministry of Finance believes Russia needs local infrastructure for crypto especially to protect the interests of citizens.

Reason is that Russian citizens who buy and sell crypto assets through crypto exchanges are very limited. In addition, Russian government wants to legally control use of cryptocurrencies. Last month, Russia's central bank and Ministry of Finance approved a draft law establishing a regulatory framework for acceptance of digital assets as a means of payment.

This decision follows a debate between two institutions that led to various bills. Russian Central Bank once called for a total ban on BTC mining under pretext of level of risk for Russian citizens.

President Vladimir Putin conveyed a message that Russia should not miss opportunities in crypto industry, because Russia already has an advantage in crypto ecosystem. According to Putin, Russia has characteristics suitable for mining BTC. Russia is third country on list of countries with highest hashrate rates for Bitcoin after China banned BTC mining in their country.

BTC miners fled China to various countries, including US, Kazakhstan and Russia. Cheap energy and Russia's cold climate make country an ideal location for crypto miners as it provides higher profit margins.

In addition, Russian central bank is rumored to be starting a digital ruble trial in April 2023. Exchange of digital rubles and foreign currencies as well as opening of digital wallets for immigrants is said to take place in 2024.

Of course this is very good news for crypto asset owners. When Russia legalizes use of cryptocurrencies in their country, user of digital assets will automatically increase and also increase price of crypto.

Hopefully this news will materialize soon, so that crypto prices return to a better level.

Reference source: https://blockchainmedia.id