Russian Deputy Finance Minister Alexei Moiseyev said at a banking conference last week that cryptocurrencies are “bad” unless they are used for imports and exports.
The minister said the House of Commons Committee on Financial Markets is considering a bill to authorize the use of cryptocurrencies in foreign transactions.
Russian Central Bank Says Crypto Shifts To “Evil” Narrative
If passed, the bill will allow a commission of law enforcement agencies, the Central Bank of Russia, and government ministries to allow individual operators to use digital currencies for international commerce.
Originally scheduled to be passed in January, the bill could be postponed until the end of 2023, the Finance Minister said.
The central bank said in September that cross-border payments were inevitable.
Following US sanctions last year, Russia suggested it could sell natural gas in Bitcoin. After Russia invaded Ukraine, foreign trading partners restricted trade in order to interfere with Russia’s military might.
The International Monetary Fund (IMF) therefore estimates that Russia’s imports fell by about 15% last year, while exports fell by 8.7%. World Bank estimates are more conservative at 9.7% and 9.6%.
For 2023, the World Bank and IMF expect Russian imports to increase and exports to remain flat or decline.
According to Statista’s February data, China will become Russia’s largest trading partner in 2021, with imports and exports reaching $141 billion. Germany followed with about $57 billion, and the Netherlands traded her $46 billion for the Kremlin.
Russia Approves Blockchain, But Rejects Crypto Payments
The House of Representatives recently passed legislation that would allow financial markets to integrate blockchain platforms to issue digital financial assets (DFAs).
Financial Market is a digitally accessible financial supermarket offering bank insurance and related services. DFA is a centrally managed digital currency.
Last October, the House of Representatives recommended that Congress reject a bill on cryptocurrency mining. The Russian Constitution does not allow the issuance of any currency other than the Russian Ruble.
The government recently proposed a concession to allow mining, provided the miners declare their earnings. A miner who failed to declare his income of $200,000 twice in three years, he faces prison sentences and forced labor.
Miners earning $600,000 could face up to four years in prison and forced labor for tax evasion.
Click here for BeInCrypto’s latest Bitcoin (BTC) analysis.
In accordance with Trust Project guidelines, BeInCrypto is committed to unbiased and transparent reporting. This news article is intended to provide accurate and timely information. However, readers are advised to independently check the facts and consult professionals before making any decisions based on this content.