The Central Bank of Russia is considering approving stablecoins for cross-border transactions, as local businesses explore alternative methods to conduct trade with China amid sanctions.
Russia’s central bank, the Bank of Russia, is considering the legalization of stablecoins for cross-border transactions as the sanction-torn country’s economy seeks alternative ways to sustain trading activity with China.
Central Bank Deputy Governor Alexei Guznov, in an interview with Russia’s state newspaper Izvestia, stated that the proposal is under discussion and has been formulated. He added that the ultimate goal is to regulate the entire process chain, enabling individuals to transfer these assets into Russia, accumulate them, and use them for international payments.
Guznov indicated that the initiative might transition from a temporary experiment to a permanent regulatory framework, although he did not disclose specifics regarding the timeline for approval.
Stablecoins, unlike traditional cryptocurrencies such as Bitcoin (BTC), are typically backed by assets and have a central issuer. This structure addresses concerns that previously led the Bank of Russia to oppose the legalization of digital assets.
However, recent developments indicate that the central bank is shifting its stance. Major Russian metal producers have reportedly started using stablecoins for transactions with China, as traditional payment methods face severe limitations due to sanctions.