Russian lawmakers have reportedly passed a bill that will allow the country to use cryptocurrency in international trade.
Reuters reports that the law is expected to come into effect in September.
Russian Central Bank Governor Elvira Nabiullina says the first crypto transactions will likely take place within the year.
The law only allows companies to use crypto in international trade, but the ban on cryptocurrency payments within Russia still applies.
Russia is facing Western sanctions over its invasion of Ukraine and banks in the countries it trades with are cautious amid the threat of secondary sanctions causing payment delays.
Nabiullina says the delays are leading to longer supply chains and higher costs. The situation is already damaging the Russian economy. In the second quarter of 2024, the country’s imports fell by 8%.
“The risks of secondary sanctions have increased. They make payments for imports difficult, and that concerns a wide range of goods.”
Many international payments still use the dollar and the euro and go through the international SWIFT system.
In June, Russian President Vladimir Putin said that BRICS, the intergovernmental organization made up of Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia and the United Arab Emirates, is working on a fully digital payment system that is independent of the U.S. dollar.
“Within BRICS we are working to shape an independent payment system, free from political pressure, abuse and external sanctions.”
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