Russia Launches New Payment System Allowing Unrestricted Use of Cryptocurrency in Cross-Border Transactions

Updated: 27 June 2023

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Russia has announced that it will be launching a new payment system that is free from any restrictions.

Russian Finance Minister Anton Siluanov disclosed that a new payment system would soon be launched, allowing for the unrestricted use of digital currencies in international payments. The new payment system is based on modern technologies, including digital financial assets and currencies.

Siluanov also mentioned that the potential use of digital currencies in cross-border payments is currently under discussion, and in the future, the focus will be on utilizing currencies such as the digital ruble, the digital yuan, and other similar digital currencies. This new system will enable the use of digital currencies for cross-border payments, and once two parties agree and make settlement payments, no other country will have the ability to intervene and freeze the payments.

No Restrictions on the New Payment System

Siluanov emphasized that the new payment system, which allows for unrestricted payments between two parties without the possibility of interference from other countries, is free from any restrictions. Russia has been working to reduce its reliance on the U.S. dollar due to economic sanctions imposed by the U.S. and other Western countries after the start of the Russia-Ukraine war. These sanctions have led to the freezing of over $300 billion in Russian central bank foreign currency assets.

The Bank of Russia has been exploring the creation of a digital currency, the digital ruble, as a means of reducing its dependence on the U.S. dollar. In a report published in July 2021, the U.S. Congressional Research Service stated that the Russian government has been accelerating its de-dollarization efforts since 2014. The report also suggests that the introduction of a digital ruble would further decrease Russia’s reliance on Western payment infrastructure that centers on the U.S. dollar.

Finance Minister Siluanov revealed at an education marathon event that Russia and China are now using their national currencies, the ruble and the yuan, for mutual settlements, replacing the U.S. dollar. When asked if these currencies could fully replace the USD, Siluanov stated that they are already exploring the possibility.

However, he acknowledged that this situation may have advantages and disadvantages but emphasized that the ruble is already replacing the dollar. Siluanov further elaborated that over 70% of the trade between Russia and China is now conducted using their national currencies.

Binance Lifts Russian Restrictions for Visa and Mastercard Users

On further development, Finance, the world’s largest cryptocurrency exchange – Binance, has reportedly lifted the restrictions it had imposed on Russian citizens and residents over a year ago. The restrictions were initially put in place in March 2022, following the European Union’s sanctions on Russia in response to its attack on Ukraine. At the time, Binance had announced that it would not support deposits from Visa and Mastercard cards issued in Russia, as well as any Visa and Mastercard deposits made from Russia.

Users can now deposit Russian rubles, euros, British pounds, and other currencies from bank cards issued in Russia. Additionally, Binance has also lifted limits on accounts with balances over 10,000 euros for users in Russia.

Despite these changes, Binance has not released an official statement regarding the lifting of restrictions. The move comes as a relief to Russian cryptocurrency traders, who were previously limited in their use of Binance’s services. With the lifting of these restrictions, Binance is expected to see an increase in trading activity from Russian users.