Russia approves law allowing use of crypto for global payments

[electronicash]

Russia approves law allowing use of crypto for global payments as it faces ongoing sanctions

• The lower house of Russia’s parliament on Tuesday approved a law that permits making international payments via cryptocurrencies, local media reported.
• Russia’s central bank is itself looking to move money across borders using crypto before the end of 2024, Governor Elvira Nabiullina said. 
• The U.S. and its allies have imposed innumerable sanctions on Russian individuals and entities in retaliation to its assault on Ukraine.

Russian lawmakers on Tuesday approved a new law permitting the use of cryptocurrency for international payments, as the country faces ongoing financial pressure from Western sanctions.

The State Duma, which is the lower house of the Russian Parliament, on Tuesday gave the initial greenlight to the new legislation, which would allow businesses to use cryptocurrencies for cross-border trade, local media reported.

https://www.cnbc.com/2024/07/30/russia-considers-legalizing-crypto-as-a-form-of-payment-amid-sanctions.html

their government is now reversing its stance to crypto to circumvent the sanctions imposed by US. With such law to be approved,  they may be able to make trades to any countries buying oil from them. countries that are sanctions might also be using BTC as mentioned in the article is North Korea. while crypto transactions can circumvent to sanctions, tracking all these transactions is very possible for all as well. this will all be transparent.

will the miners be useful this time to censor transactions? 

[Captain Corporate]

Sanctions are definitely the reason for this. Normally Putin is a dictator, so that means he would not want something as decentralized as Bitcoin to exist in his nation and would prefer to ban it, but even if not ban it, regulate it heavily. But considering western nations are focusing on sanctions, that means not only Russians are having trouble selling their stuff and using anything else for payment, and also there are many oligarchs who are rich enough that they want to bring their money back, to avoid sanctions and asset freeze. So that is why I think its clear that we are seeing Russia putting crypto in a good light for them.

[hugeblack]

As much as I would prefer Bitcoin to stay away from political tensions, especially those related to US sanctions, it seems that the legal status of Bitcoin in Russia is very variable and I did not think that there was legislation restricting the dealings of cryptocurrencies. If anyone has more details about the legal status of Bitcoin, I hope you add it as a summary below

[Kemarit]

As much as I would prefer Bitcoin to stay away from political tensions, especially those related to US sanctions, it seems that the legal status of Bitcoin in Russia is very variable and I did not think that there was legislation restricting the dealings of cryptocurrencies. If anyone has more details about the legal status of Bitcoin, I hope you add it as a summary below

Only thing that I can add is that way back 2018, as far as I can remember, Russia's stance is somewhat on the middle. I mean there will be a government official that will say that they are pro-crypto and then the next day, another official says a different tune. That's why I remember back when that the consensus of the community is to stay away from Russia or take everything with a bag of salt everything they will have to say against crypto. There were even a time when Putin meet with Vitalik Buterin and everyone applauded that and think it's going to be a welcoming news for Russia but nothing has materialized. But with what has happened to them and to a extend to North Korean although they went further with the hackings of crypto exchanges to get funds, Russia by now should be looking for crypto to saved them at least and circumvent the trade embargo or what the West is sanctioning them because of the war.

[TomPluz]

I am looking at this news as positive for the cryptocurrency industry though this can be raising some eyebrows on the part of the country imposing the economic sactions which is the USA. However, we should note that I am sure Russia has many ways to deal with the sactions and this cryptocurrency option is just one of them. Indeed, anybody can use cryptocurrency to get away from the controlling power of any government and this time around it is the government of Russia against the government of USA. As to your concern, I am not sure if miners would be hassled to block any transaction with the intent to circumvent the saction but let's see if USA will be using its influence on this matter but I highly doubt it.

[ABCbits]

The State Duma, which is the lower house of the Russian Parliament, on Tuesday gave the initial greenlight to the new legislation, which would allow businesses to use cryptocurrencies for cross-border trade, local media reported.

Initially it seems to be big news. But looking at this quoted part, it means they also can use Bitcoin with other group who already ignore sanction in first place. Although i expect this law will add more pressure to centralized mining/stacking pool to not include certain TX.

[Baofeng]

I am looking at this news as positive for the cryptocurrency industry though this can be raising some eyebrows on the part of the country imposing the economic sactions which is the USA. However, we should note that I am sure Russia has many ways to deal with the sactions and this cryptocurrency option is just one of them. Indeed, anybody can use cryptocurrency to get away from the controlling power of any government and this time around it is the government of Russia against the government of USA. As to your concern, I am not sure if miners would be hassled to block any transaction with the intent to circumvent the saction but let's see if USA will be using its influence on this matter but I highly doubt it.

Every news that talks about crypto or Bitcoin being used by a certain country and makes a lot about it, is welcoming to us. However, we have to look at the context on why suddenly the Russians soften their stance on crypto and as if they suddenly make a U-turn.

And we found out that it's because of the sanctions on them that suddenly they turn into crypto to save them from what the government of USA is imposing of them. So for me this is just born out of the necessities and circumstances and if everything goes to normal again, I highly doubt that they will keep this crypto friendly law.

[Zed0X]

Well, I guess opening their gates for crypto payments will be an added measure aside from being a founding member of BRICS.

will the miners be useful this time to censor transactions? 

Yeah, this is the interesting part. Miners based in US, UK, and maybe EU could be forced to block transactions going to known Russian addresses. The smallers miners outside those regions wouldn't care.

[Lucius]

I can only say about such a decision - hypocrites who first forbid something because they are obsessed with controlling everything around them, now they feel the pressure of sanctions and suddenly change their decision not to make it easier for their people, but to be able to finance their war machine more effectively.

In January 2022, the Russian central bank proposed banning the use of crypto for transactions, as well as the mining of digital currencies, citing threats to financial stability, citizens’ wellbeing and monetary policy sovereignty.

I won't go into what anyone thinks about the fact that Russia will use cryptocurrencies to avoid sanctions, but I will just say that for all of us it will only mean more controls, restrictions and attacks on privacy.

[MrSpasybo]

Only thing that I can add is that way back 2018, as far as I can remember, Russia's stance is somewhat on the middle. I mean there will be a government official that will say that they are pro-crypto and then the next day, another official says a different tune. That's why I remember back when that the consensus of the community is to stay away from Russia or take everything with a bag of salt everything they will have to say against crypto. There were even a time when Putin meet with Vitalik Buterin and everyone applauded that and think it's going to be a welcoming news for Russia but nothing has materialized. But with what has happened to them and to a extend to North Korean although they went further with the hackings of crypto exchanges to get funds, Russia by now should be looking for crypto to saved them at least and circumvent the trade embargo or what the West is sanctioning them because of the war.

Russia stance on crypto has been fluctuating: banks want to ban crypto to protect fiat, while the finance ministry seeks to leverage crypto to circumvent sanctions. Having lived in Russia, I witnessed firsthand the challenges faced when many Russian banks were cut off from SWIFT, businesses suffered even more when forced to rely on services from China or India.

I believe that once crypto is adopted in Russia, Western governments will intensify efforts to track and sanction countries that continue to trade with Russia using crypto. BTC or ETH won't be viable due to their transparency, privacy coins seem like the most suitable option if Russia truly wants to sustain global trade without succumbing to sanctions.

[LogitechMouse]

With lots of sanctions being imposed by them, I'm not surprised that they will allow it on their country.
I mean we know how much these sanctions affected their economy. They know that they can't stay like this forever, and they need to do something. What's the solution? Cryptocurrency.

Well, it's a win for us crypto investors since this increases the adoption rate of Bitcoin... or is it? I just hope that this move by them will be more of a positive one than a negative one.

[yhiaali3]

It seems like big news that the Russian government has agreed to accept Bitcoin and cryptocurrency payments across borders to evade US sanctions. Not long ago, Russia banned Bitcoin and now it is using it to evade sanctions.

But Russian citizens shouldn’t be too happy about the news because the government will definitely not allow them to do the same. This is only allowed for the government and close figures, as happened previously in Iran where the government used Bitcoin to evade US sanctions but at the same time banned citizens from using it.

[electronicash]

With lots of sanctions being imposed by them, I'm not surprised that they will allow it on their country.
I mean we know how much these sanctions affected their economy. They know that they can't stay like this forever, and they need to do something. What's the solution? Cryptocurrency.

Well, it's a win for us crypto investors since this increases the adoption rate of Bitcoin... or is it? I just hope that this move by them will be more of a positive one than a negative one.

if they see Bitcoin is about to be adopted in US through Trump, there wouldn't be a reason for them to also adopt it. in fact they were mining along with China in the early days of Bitcoin. they also have developers off cryptocurrencies from their country such as Vitalik and Sasha.

it depends on which side you are going to listen. because there is always two sides of every story and regulating the decentralize currency should be done by their own government. If Russia's regulation is stringent then its their rules. If US has less stringent rules then its also their rules.

but miners will likely play a role making BTC not so decentralized.

[Charles-Tim]

It seems like big news that the Russian government has agreed to accept Bitcoin and cryptocurrency payments across borders to evade US sanctions. Not long ago, Russia banned Bitcoin and now it is using it to evade sanctions.

But Russian citizens shouldn’t be too happy about the news because the government will definitely not allow them to do the same. This is only allowed for the government and close figures, as happened previously in Iran where the government used Bitcoin to evade US sanctions but at the same time banned citizens from using it.

Do not mind all what you see on news. Or I should say that some peooke will look at the news and give it different meaning. Not able to make payment in bitcoin does not means Russians are not using bitcoin for some online payments because everything can not be known to the government. And also that does not mean Russians are not trading and holding bitcoin. What that is most important in the adoption is to be able to trade and hold bitcoin. No need for payment use.

[ZAINmalik75]

their government is now reversing its stance to crypto to circumvent the sanctions imposed by US. With such law to be approved,  they may be able to make trades to any countries buying oil from them. countries that are sanctions might also be using BTC as mentioned in the article is North Korea. while crypto transactions can circumvent to sanctions, tracking all these transactions is very possible for all as well. this will all be transparent.

will the miners be useful this time to censor transactions?

They aren't going to make trades with North Korea but if they are going to then it mean they are doing it previously. Dealing with North Korea is not a big deal somehow North Korea is making deals with everyone. This new law by Russia will proved to be good for Bitcoin.

To be honest BTC will grow more and this law change will increase the demand which even the selling of Silk Road selling won't cover. If Russia will be dealing to all of the countries in BTC not only when buying or selling OIL but every other product then this is a big win for BTC.