Russia May Use Stablecoins to Settle Transactions
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An editor at Coincrop
08 Sept 2022 | 2 min read
Russia is exploring the use of stablecoins for cross-border payments with friendly nations as it seeks to navigate sanctions resulting from its invasion of Ukraine. The Bank of Russia has announced its intention to legalize cryptocurrencies as a payment method.
The use of stablecoins and crypto to circumvent existing financial sanctions due to Russia's aggression in Ukraine is the result of preexisting economic constraints.
In early May, the EU and its allies banned several Russian banks from using SWIFT (The Society for Worldwide Interbank Financial Telecommunication). This created a need for an alternative payment system, which led to the increased use of stablecoins and crypto currency.
As a result, it is only natural that Russia and the Central Bank look into alternative financial settlements, such as cryptocurrencies and stablecoins, which are already in use on a peer-to-peer basis for cross-border payments.
JonathanAn editor at Coincrop
Jonathan is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely sailing.
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