The head of the Financial Policy Department at the Ministry of Finance favored policies to allow crypto-stablecoin-backed payments in the Russian Federation.
Russia is a tech adoptive country but its stance on crypto was not much clear, as per statements made by many Russian government agencies on crypto last year. But the Russian military invasions in late Feb 2022 on Ukraine & international financial trade ban on Russia forced the government agencies of Russia to adopt some possible ways to bring payment services under a decentralized protocol, where any type of financial trade can be done with easy bypass of financial restrictions. Now Russia is looking at cryptocurrencies to make rules & regulations more clear & restricted, to prohibit illegal use cases of cryptocurrencies.
Recently Ivan Chebeskov, the head of the Financial Policy Department at the Ministry of Finance of the Russian Federation, said that the Ministry is in favor of stablecoin backed payment services & stablecoin circulation in the country.
During an event of Russian Creative Week titled “The Influence of Web3 — New Era of the Internet of Trust?“, Ivan said that a stablecoin-based payment system could give better results and it will be beneficial for businesses.
The Minfin official explained that crypto-stablecoin-based payment systems can easily provide ease & efficiency in the payment system but we have to limit the risks associated with it.
“If there is a need for businesses, companies, or investors to settle, invest in a new way if they need such a tool, because it reduces costs, works better than previous tools, and if we can limit the risks associated with it.”
Interestingly, in the past, the Ministry showed significant support in favor of crypto & blockchain. The Russian Finance Ministry is aware of the potential of cryptocurrencies but still, it is skeptical about the positional ability of crypto-backed payment systems over traditional banking systems.
“But one cannot be completely sure that it will be able to work better than the existing financial systems.” Ivan said.
Earlier this, this Russian official introduced his own proposed crypto regulation framework to kick out the loopholes associated with the existing crypto bill, which was introduced on 1 January 2021.