Russia’s Rostec To Test Digital Asset Payments In Foreign Trade

Rostec is recognized as one of the top tech companies in Russia and it is now working on a project that involves the integration digital assets to make payments in cross-border trades.

According to the state-owned corporation, there is a demand for the use of crypto for making international payments because it would help reduce pressure on Russian importers and exporters brought on by Western sanctions.

Sanctions

The biggest technology and industrial conglomerate in Russia is gearing up for a new project aimed at integrating cryptocurrencies to conduct cross-border transactions.

The primary task for Rostec would be to minimize the negative impact of Western sanctions that have taken a toll on the exporters and importers in Russia by limiting their access to the global financial system.

The military invasion of Ukraine by Moscow drove Western nations to impose financial restrictions on Russia, which have affected the economy as a whole and foreign trade operations in particular.

A greater number of officials are supporting proposals for legalizing the use of digital financial assets (DFAs) including stablecoins, cryptocurrencies, and even the upcoming digital ruble, with partners.

The project

Anna Sharipova, the Managing Director for National Projects at Rostec, spoke at the Eastern Economic Forum on the topic of Digital Finance.

She disclosed that the company was exploring the idea of using digital assets to pay for exports and imports.

She also said that they would conduct trials on Russky Island, close to the second-largest city in Russia’s east, Vladivostok.

The high-ranking executive asserted that there was a great deal of interest in the use of crypto for making international settlements.

She said that consumers and suppliers who are separated by borders have been struggling with restrictions due to the sanctions and want to use efficient and modern settlement systems.

Experts at Rostec are currently working on the project’s launch strategy, which would have the support of local authorities as well as market participants.

Russian authorities

This news comes after Alexey Moiseev, the Deputy Finance Minister, revealed that the ministry and the Bank of Russia had come to an agreement about legalizing crypto for international settlements.

It should be noted that the Central Bank of Russia (CBR) had been vocal about imposing a blanket ban on cryptocurrencies and did not want these digital financial assets (DFAs) to be legalized.

Anatoly Aksakov, the State Duma’s Financial Market Committee’s head, had also called for the development of a regulatory framework for cryptocurrencies.

Moreover, the Bank of Russia also announced later that it would prefer to promote the use of the digital ruble for making international settlements.

It has been working on developing a central bank digital currency (CBDC) for quite a while and would give it preference over the use of other DFAs and that crypto would not be legalized for use in the country as a payment method.

Other Russian officials, including the head of the country’s financial watchdog, had stated that crypto payments could be used for foreign trade purposes.

By Brandon Craig
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