Bank of Russia plans on leveraging crypto through new organizations

The central bank of Russia, Bank of Russia, has planned to start new units for crypto mining and international settlements.

The Bank of Russia is in the news for its new plans to divert pressures from global sanctions on its economy. In the latest development, the Bank of Russia plans to set up new organizations for crypto mining and cross-border settlements. It will be implemented initially on an experimental basis.

“We adhere to the same position that within the country, cryptocurrency […] should not be used, and for external settlements, we assume that this is possible in the form of an experiment. This bill is also being prepared in the form of an experimental legal regime,” said Bank of Russia’s head, Elvira Nabiullina. She had announced the central bank’s decision in one of Russia’s parliament houses, where she announced the pilot for international settlements in crypto.

The new entities set up would be ‘special authorized organizations’ specifically incorporated for the desired operations with crypto. The Deputy Chairman of the central bank, Aleksey Guznov, revealed that the central bank and the government are currently holding discussions on the type of organizations that would take responsibility for the crypto-related activities. They also deliberated on the way forward for the inclusion of the private sector in the process.

The chief executive officer of the Global Digital Asset & Cryptocurrency Association, Gabby Kusz, also implied that countries like Russia and China gradually realized the value of crypto as a means of exchanging value rather than a new financial product. She stated how blockchain and crypto would revolutionize the world of finance and reduce monopolies.

The Bank of Russia is also currently involved in the rollout of the digital ruble through a pilot program.

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