Russia Recognizes Digital Currencies of Other Nations

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The Russian government has legally recognized digital currencies issued by other nations, local crypto media reported. The respective legislative changes have been made alongside the adoption of a dedicated law regulating the introduction of Russia’s own digital ruble.

Amendments Legalizing Foreign CBDCs Enter Into Force in Russia

Russian authorities have granted digital currencies of other states a similar status to that of the digital ruble, the Russian crypto news outlet Bits.media informed readers on Thursday, quoting the government’s official online portal for legal information.

The recognition of other central bank digital currencies (CBDCs), such as China’s digital yuan, for example, has been done through amendments to Russia’s federal law “On currency regulation and currency control” which entered into force on Aug. 1, the report details.

The update adds to the definition of foreign currency the text “issued in digital form by the national central bank of a foreign state.” In accordance with the revised legislation, non-residents will not be restricted in carrying out transactions with such digital currencies, the publication pointed out without elaborating.

Russia’s digital ruble law also came into force on Tuesday. The legislation, which creates the legal basis for the introduction of Bank of Russia’s digital currency, was passed by both houses of parliament and signed by President Vladimir Putin in July. Russian banks participating in the CBDC pilot are expected to start testing transactions with real users as early as this month.

Pressed by sanctions over its invasion of Ukraine, Russia has been exploring ways to circumvent financial restrictions and looking to digital currencies, including crypto payments under special legal regimes, as an option for international settlements.

Last month, Central Bank of Russia Governor Elvira Nabiullina unveiled that the monetary authority is already discussing the possible integration of the digital ruble platform with the payment systems of other nations to facilitate cross-border transactions.

However, the digital ruble is yet to win wider recognition from Russia’s private sector. According to a recent poll among over 1,200 representatives of small and medium enterprises, almost two-thirds of Russian companies don’t see any advantages of the CBDC for their businesses.

Do you think Russia and its companies will use the digital ruble or other digital currencies in settlements with partners? Tell us in the comments section below.