Russia may start accepting bitcoin and some cryptocurrencies as payment for international trade in 2023, according to a report from the local media company. Izvestia.
The announcement of a timeline for using the alternative payment method for cross-border payments comes a week after the Russian Central Bank and the Ministry of Finance agreed that the move would be necessary.
Ivan Chebeskov, director of the financial stability market for the Russian Finance Ministry, was cited in the Izvestia report as the source of the chronology, confirmed by Anatoly Aksakov, head of the State Duma Committee, Russia’s legislative governing body.
“We have a number of legislative initiatives that we are working on in order, but which have not yet been formally presented to the government,” Chebeskov said.
According to Chebeskov, Russia will allow companies to choose whether to use bitcoin or some state-permitted cryptocurrencies. The operations of this procedure should be facilitated by the Moscow and St. Petersburg stock exchanges.
“Therefore, there may be several options as to how [international payments] can be implemented, “Chebeskov explained.
Chebeskov noted his confidence in government approval as there is growing support among lawmakers hoping to approve the process of using digital assets for international trade.
“Also, I know that there are deputies in the State Duma who are actively engaged in this matter, perhaps it will be their own initiative,” Chebeskov said. “There are people who think alike in this direction.”
Likewise, the Energy Minister said in the report that the use of digital assets can help reduce the pressure of sanctions by allowing small and medium-sized businesses to transact internationally.
Daniil Egorov, the head of the Federal Tax Service, assured that conversations on taxation for the international trade process with bitcoin are also being discussed.
“After consulting the Central Bank, this decision will be made,” Egorov said.
There are also inter-departmental debates on whether or not to classify bitcoin and some cryptocurrencies as properties, according to the report. This designation would also affect how these transactions are taxed.
Indeed, Russia has moved from the blockade phase to contemptuous deliberation regarding bitcoin and its use for international payments. The Bank of Russia at one point was arguing a banwhich led Russian President Vladimir Putin to announce his support for bitcoin mining.
So, earlier this year, the Russian government proposed a bill on the regulation of digital assets, followed by a proposal from the Ministry of Finance.