In the latest news, a Russian institute is working on establishing a sandbox. The project aims at improving crypto payments across borders.
In addition, the sandbox will help to identify possible technological and regulatory challenges. As a result, the institute will be able to tackle them before full implementation.
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Russia Ready To Test Cross-border Crypto Payments Using Sandbox
In Russia, the institute tasked with making its export activities is the Russian Export Center (REC). However, the institute is taking up a new project.
This project aims at providing an alternative payment method amid the numerous sanctions. REC is considering the usage of cryptocurrencies in international payments.
According to the report, the agency believes this initiative is a welcoming development. It would provide opportunities for fintech firms to process international payments. With the help of digital currencies, they can process payments for Russian importers and exporters.
Veronika Nikishina, REC’s leader, noted that this alternative means of payment would develop rapidly. While talking at St. Petersburg International Economic Forum, Nikishina added that:
“As an institution drawn to current trends and developments, we are working on a sandbox. This digital sandbox is to test the stage of crypto for cross-border payments.”
As stated by Tass, Nikishina noted that the institute is working with representatives. These are representatives from fintech companies, regulatory authorities, and Russia’s Central Bank.
Besides, the export institute has also reached out to Rosfinmonitoring, Russia’s financial regulator. This will regulate the new payment method and the various participants.
As per the REC leader, it is important to build a sandbox. She believes it will help identify possible technological and regulatory risks. Nikishina added that this would increase the speed and safety of crypto payments.
Russia Institutions Maintains Stance On Ruble As Only Legal Tender
Furthermore, it is noteworthy to say that Russia’s Central bank is now open to crypto usage. Before this time, the apex bank has been against the authorization of digital assets in the state.
However, the sanctions imposed on Russia by Western countries have caused a change of heart. Meanwhile, most institutions in Russia believe that cryptocurrencies should not become legal tender.
They noted that any crypto regulation should respect the Ruble as the only legal currency. Before now, there have been worries surrounding the usage of crypto for payment. Among them is that it would reduce the value of the Ruble.
At the beginning of this week, Russia’s house of parliament passed a crypto bill. The bill was to ban the usage of crypto for payment purposes. However, it allowed for using digital assets as an investment vehicle.
As a result, only the Russian Ruble stands as the country’s legal currency. Meanwhile, Russia is accelerating the development of its central bank digital currency (CBDC). The CBDC is set to begin a trial program early next year.