- Russia plans to start testing cryptocurrency exchanges for international transactions
- Testing is expected to begin on September 1 using the national payment card system and the ruble
- The crypto legalization strategy to circumvent sanctions seems to be close to implementation
Bloomberg reports that Russia is set to begin testing cryptocurrency exchanges for international transactions on September 1
This is the next logical step after the legalization of cryptocurrencies, probably aimed at circumventing U.S. sanctions imposed after the invasion of Ukraine.
Russia Crypto Exchanges and National Payment Card System
The testing should in particular utilize the ruble and cryptocurrency swap functions within the National Payment Card System, as Visa and MasterCard have been disabling support for Russian cards for more than two years.
This should create a seamless integration between the national currency and cryptocurrencies, and eliminate the inconvenience and costs caused by Western sanctions and the partners who have joined them, which is very slowing down the Russian economy and foreign trade of resources.
All this has become possible thanks to the previously drafted bill on the legalization of cryptocurrency transactions and mining, which President Putin signed into law on August 8th.
Conclusion
All of this could be a very worrying sign, and render sanctions as a tool completely useless.
Of course, blockchain technology should first and foremost protect the interests of private investors and the freedom and privacy of regular citizens.
However, it has its features that can be used by anyone in any way, and instead of forcing states to behave more responsibly, can completely unleash them and take control away from citizens.
We’ll be watching closely to see how this works in practice and how much it can challenge the instrument of sanctions, and maybe even the dollar itself.
