Key Takeaways:
- Russia is exploring alternatives to US dollar reliance and the SWIFT system for international trade settlements.
- New legislation, effective November 2024, permits approved firms to mine cryptocurrencies and restricts mass crypto advertising.
- Russia, with BRICS, is working on a unified digital currency, though experts question its feasibility.
In response to US sanctions and being blocked from the SWIFT interbank messaging system, Russia is exploring alternative methods for international trade settlements.
President Vladimir Putin has approved a law to reduce reliance on the US dollar, which will take effect in November 2024.
BREAKING: 🇷🇺 Russian President Vladimir Putin signed a law legalizing cryptocurrency mining in Russia — TASS pic.twitter.com/wAWJzDJ5t2
— Bitcoin Magazine (@BitcoinMagazine) August 8, 2024
The new legislation allows approved firms to mine cryptocurrencies and introduces a ban on mass crypto advertising.
The Bank of Russia, Ministry of Finance, and a government cabinet will oversee the regulatory framework.
JUST IN: In an effort to "seize the moment," Putin signs a law to legalize #Bitcoin mining in 🇷🇺 Russia.
— Bitcoin News (@BitcoinNewsCom) August 8, 2024
Only Russian legal entities and registered individual entrepreneurs can mine. Individuals under the government-set energy limits can mine without registration.
Foreign… pic.twitter.com/Lt5kY8xNKv
Additionally, Russia, as part of the BRICS bloc, is working towards developing a unified digital currency for trade settlements, although experts like macroeconomist Lyn Alden express skepticism about its feasibility.
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Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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