Benzinga - While the BRICS nations — Brazil, Russia, India, China and South Africa — embark on an ambitious plan to create a new global currency, Russia has announced plans to establish specialized institutions dedicated to mining and facilitating cross-border cryptocurrency transactions.
What Happened: Russia aims to form a "special organization" to utilize digital assets in international business transactions.
The Central Bank of Russia is already in the process of drafting legislation to enable the use of cryptocurrencies in international trade.
This development comes as Russia faces increasing economic isolation from the West due to the Ukraine invasion.
Russia's Plans For A Crypto Mining Institution: Despite the Russian government's firm stance on domestic cryptocurrency use, international utilization of digital assets is becoming more feasible.
The country is actively exploring ways to leverage cryptocurrencies for international trade.
Recent reports indicated Russia is working on creating specialized institutions for mining and transferring cryptocurrencies across borders.
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Elvira Nabiullina, the head of the Bank of Russia, confirmed this development while addressing the Federal Assembly of Russia.
According to Finbold, Nabiullina said "We adhere to the same position that, within the country, cryptocurrency (...) should not be used."
She continued, "As for the foreign payments, we assume that this is possible in the form of an experiment," alluding to the forthcoming legislation.
The proposed institution would be responsible for mining cryptocurrencies and managing payment arrangements with foreign entities.
Alexei Guznov, the central bank's deputy chairman, spoke about the developing institutions and potential participants.
"An analysis will be carried out of what kind of organization this can be," Guznov explained. "For now, there is just a discussion with the government so that their sphere of activity is understood, which banks they serve, and how much they can interact with representatives."
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