Russian Government Explores Crypto Payments for Imports with Military Applications
The Russian government has launched a focus group under an experimental legal framework to test the use of cryptocurrency for international trade payments, according to a report by Vedomosti on September 17. This initiative specifically targets challenges faced by importers handling dual-use goods, items that can serve both civilian and military purposes, and which are subject to stringent international payment restrictions.
The timing of this move is noteworthy, following China’s recent decision in early August to prohibit the export of all unregulated civilian drones—many of which have found military applications—starting on September 1.
The focus group reportedly includes representatives from the Russian Chamber of Commerce and Industry, the Association of Developers and Producers of Electronics, and several financial institutions. However, it remains unclear whether these institutions are exclusively Russian or if foreign lenders are involved as well.
The experiment aims to assist importers who face difficulties executing transactions with banks in China and other countries, primarily due to the sensitive nature of the goods being traded. This follows recent reports that Russia’s two largest unsanctioned metal producers have started using Tether, a stablecoin, for cross-border payments with Chinese clients and suppliers. These actions come in response to warnings from the U.S. Treasury about secondary sanctions.
Insiders say that participants in the focus group were chosen based on the scale of their business operations, with larger companies being given priority. While the government plans to expand the project, a timeline for a broader rollout has yet to be confirmed.
In a related development, Alexei Guznov, deputy governor of the Bank of Russia, mentioned in a July interview that the central bank is considering the legalization of stablecoins for international payments. He hinted that the current experiment could evolve into a permanent regulatory structure, though no specific timeline has been provided for its potential approval.
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