The Bank of Russia is exploring the use of stablecoins in cross-border transactions, considering them as digital financial assets (DFAs) under existing regulations if they have a responsible entity. The initiative may involve a limited group of qualified investors and would require testing for regulatory feasibility.
The Bank of Russia, the country’s central bank, is considering the use of stablecoins for cross-border transactions, according to Alexey Guznov, State Secretary and deputy governor of the central bank of Russia, in an interview with Izvestia.
He revealed that the Bank is considering allowing stablecoins to be used by a select group of qualified investors for cross-border financial transactions. These stablecoins would be treated as digital financial assets (DFAs) under current regulations if they have a responsible entity behind them. Guznov explained:
Stablecoins could potentially be used for cross-border payments within the framework of digital asset regulation, as some of them qualify as DFAs.
He further clarified that stablecoins with no responsible entity and calculated by an algorithm are more akin to digital currencies. He noted that the use of such stablecoins for cross-border settlements would require initial testing to assess their feasibility within the regulatory framework.
Guznov also mentioned that a new law concerning crypto mining and its use in cross-border transactions was recently enacted. The law enables these transactions to be conducted in a regulatory sandbox through authorized entities.
He said:
Now the task of adopting the regulatory sandbox program and other ancillary laws as soon as possible is being looked at.
The experimental phase will involve using designated platforms for cross-border settlements with digital currencies, with plans to expand participation to a limited group of qualified investors in the future.
What do you think about the Bank of Russia’s plan to explore stablecoin use in cross-border transactions? Let us know in the comments section below.
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