Due to their limited access to the international banking system, Russian businesses have begun paying their overseas partners in cryptocurrency. Government officials have seen an upsurge in these payments, despite the fact that they are still modest sums and before authorities have even established how to regulate these transactions.
In fact, although payments in US dollars and euros are declining, these cross-border settlements in cryptocurrencies are increasing in Russia.
According to Vladimir Gamza, head of industrial, financial, and investment policy at the Council of the Chamber of Commerce and Industry of the Russian Federation, Russian enterprises are now actively adopting digital payment instruments, including cryptocurrencies.
Russian banks were disconnected from SWIFT, the international payment messaging system, as part of the actions taken in reaction to Russia’s invasion.
The leader continued by saying that the primary use of digital currencies today is to resolve disputes with what he referred to as “unfriendly countries,” particularly for Russian exports and to pay for imports of manufacturing-related components.
The import of consumer items can also be paid for using cryptocurrencies. Vladimir Gamza anticipated that the amount of cross-border cryptocurrency transactions might increase in the context of the sanctions.
