An overview of current news in the crypto space
In our digest, we took a look at some of the important crypto industry news from the past week:
- The State Duma of the Russian Federation removes the ban on the organization of the circulation of cryptocurrencies;
- Russia uses cryptocurrencies to solve problems with international payments;
- El Salvador proposed to use cryptocurrency in trade with Russia;
- Sber submitted recommendations to the Central Bank of Russia on trading in cryptocurrency;
- Russia plans to launch gold tokens for cross-border payments.
Now for more details. Reading time: 8 minutes.
The State Duma removes the ban on organizing the turnover of cryptocurrencies.
The State Duma Financial Market Committee has amended the draft law on mining, removing the ban on organizing the turnover of cryptocurrencies. The ban on advertising of digital currencies has been retained and will be included in amendments to the Federal Law “On Advertising” to reduce risks for consumers.
The original ban excluded the possibility of setting up exchanges and exchangers outside the experimental legal regimes (EPR), which caused serious concerns among crypto businesses. Deputy Anton Gorelkin said in his Telegram channel that the committee heard the industry representatives and made changes.
The bill also includes a ban on the activities of “household miners”. The State Duma Energy Committee noted that controlling electricity consumption by private individuals can be difficult, which could encourage illegal mining. It did not completely ban mining for private individuals.
The bill to legalize the use of cryptocurrencies in cross-border settlements is at the final stage of consideration. Gorelkin noted that the discussion will be held without excessive public attention, so as not to play into the hands of opponents.
Recall, the bill on mining and cryptocurrencies was adopted by the State Duma in the first reading on July 24 and may come into force as early as September 1 of this year.
Russia uses cryptocurrencies to solve problems with international payments.
Russian companies are facing difficulties in international payments due to the threat of secondary sanctions. As a result, cryptocurrencies and payments through intermediaries are gaining popularity, especially in transactions with China. Trade with the PRC reached a record $240 billion in 2023, but transactions often go through agents in former Soviet republics, making it difficult to obtain currency.
Cryptocurrency payments through Hong Kong are also becoming popular, but require intermediaries in Uzbekistan or Kazakhstan. In India, the problem is exacerbated by the non-convertibility of the rupee, making it difficult to liquidate accumulated funds.
Russian authorities are considering legalizing cryptocurrencies to facilitate international settlements. The State Duma has passed a bill on an experimental legal regime allowing the use of cryptocurrencies for foreign trade payments. The central bank plans to launch the experiment in September.
The Reserve Bank of India authorized the use of funds accumulated in rupees for local investments and purchases. In Turkey, some banks have halted transactions with Russian Federation, which also affects trade.
The inability to make cross-border payments is pushing Russian authorities to legalize cryptocurrencies to cut costs and make imported goods more expensive. However, experts believe that digital currencies will not become a full-fledged alternative to international currencies, but will help improve the situation.
Salvador proposed to use cryptocurrency in trade with Russia.
The authorities of El Salvador have proposed to use cryptocurrency for trade operations with Russia, First Secretary of the Russian Embassy in Nicaragua Alexander Ilyukhin said. This is due to difficulties in settlements in the official currency of El Salvador – the US dollar. Ilyukhin noted that the use of bitcoin could be an alternative in the face of possible sanctions from Europe and the United States.
El Salvador became the first country to officially accept bitcoin as a means of payment. Inside the country, any tourist can pay with bitcoins for any services. However, in Russia, the cryptocurrency has not yet become widespread.
Ilyukhin also suggested creating a bank in El Salvador that would settle payments in various world currencies, such as the yuan and the Russian ruble. This could simplify trade transactions and strengthen trade and economic relations between El Salvador and Russia.
Earlier, the U.S. State Department recognized the importance of bitcoin as a legal tender to improve the investment climate and revive El Salvador’s tourism industry.
Sber has submitted recommendations to the Central Bank of Russia on cryptocurrency trading.
Sberbank has sent recommendations to the Bank of Russia on the parameters of the experimental legal regime (EPR) for exchange trading in cryptocurrency. Anatoly Popov, Deputy Chairman of the Bank’s Management Board, said that Sber sees great potential for the digital economy in this project and supports the creation of a regulated cryptocurrency market.
Popov stressed that the initiative will streamline the circulation of digital currencies and legalize mining, as well as expand opportunities for international settlements. Earlier, the State Duma’s Financial Market Committee approved a bill on cross-border settlements using digital currencies under the EPR.
An experimental regime for cryptocurrency trading is needed to test new ways of trading, develop rules and protect investors. The program, which the Central Bank may approve from September 1, 2024, will determine the procedure for admitting cryptocurrencies to trading and requirements for trading platforms.
Sberbank will continue to actively participate in developing and finalizing the parameters of the EPR to ensure safe and efficient trading of digital assets and strengthen Russia’s position in the global market.
Russia plans to launch gold-backed tokens for cross-border payments.
Russian lawmakers are considering the launch of gold-backed tokens managed by the Central Bank to solve problems with cross-border payments. According to the media, such assets could provide companies with a “stable mechanism for international transfers.” The initiative is at the development stage.
Anatoly Aksakov, head of the State Duma’s banking committee, said that testing of gold tokens should be completed by the end of 2024. The regulatory framework has already been created, but details about operators and transaction processes are not disclosed due to concerns about sanctions.
In addition, the Bank of Russia is considering legalizing stablecoins to support trade activity with China. According to Alexei Guznov, deputy chairman of the Central Bank of Russia, the proposal is still under discussion, but the technological chain for the transfer and use of stablecoins in international payments is already clear. There is no exact timeline for approval of the initiative yet.
In general, Russia is actively exploring options to improve cross-border payments using modern technologies such as gold-backed tokens and steblecoins. This could increase the stability of international financial transactions in the face of sanctions.
Thank you for being with us. Crypto-industry news on Bit.team – always up to date.