​MGIMO University analyst assesses the chances of experimental payments in cryptocurrency in Russia

What’s new? Elina Sidorenko, director of the Center for Digital Economy and Financial Innovation at the Moscow State Institute of International Relations (MGIMO University), believes that the Russian authorities may introduce an experimental mode of payments in cryptocurrency for some transactions in the country, Lenta.ru reports. According to the analyst, the statement of Finance Minister Anton Siluanov about the possible use of digital assets with trading partners from other countries puts the issue of legalization of cryptocurrencies as a means of payment at the forefront.

Material by Lenta.ru

What else did Sidorenko say? She noted that “a statement from such a high-level person can be seen as a rather eloquent desire of the state to develop effective mechanisms for the use of cryptocurrencies for public payments.”

When legalizing such payments, it is important to remember that the flows through which the digital assets will pass may be monitored by countries that have imposed sanctions against Russia. Sidorenko stressed that considering cryptocurrency as a means of payment and simultaneously banning its use in the same capacity contradict each other.

The analyst believes that the problem can be solved by analogy with the legal regulation of foreign currency, which is prohibited in the country as a means of payment, but in the meantime is constantly used as a unit of transnational payments. In addition, the expert urged to pay attention to when and with which specific partners transactions will be conducted, on which digital platforms, and how they will be backed.

Sidorenko said that the widespread use of digital assets on a par with the ruble is unlikely, noting that the cryptocurrency may receive the same status as the currencies of other countries. However, this requires testing mechanisms, the highest quality of which is the use of an experimental legal regime. Such a practice already exists, and with cryptocurrencies, according to Sidorenko, it “will get a new sounding and will show its effectiveness.”

In November, the head of the Central Bank’s Governor Elvira Nabiullina spoke out against the use of private cryptocurrencies in payments. In June, she stated that this type of asset should not be used in the Russian Federation as a means of payment, but later allowed the possibility of their use along with the digital ruble in international transactions.

Deputy Anatoly Aksakov reported that a domestic crypto exchange could appear as early as Q2 2023 if the State Duma passes a draft law to legalize cross-border transactions with digital assets.