Russia’s Finance Ministry Supports the Circulation of Stablecoins in the Country

Russia’s Finance Ministry Supports the Circulation of Stablecoins in the Country

The Russian Ministry of Finance is now ready to approve stablecoin transactions in Russia. While the ministry accepts that cryptocurrencies could lay the ground for a new financial system, it is unsure if it will be an improvement on the current one.

Russia’s Minfin Open to Stablecoins

The Ministry of Finance of the Russian Federation is ready to support the circulation of stablecoins in the country, according to Ivan Chebeskov, Director of the Financial Policy Department. The top official made the statement during the "The Influence of Web3 – New Era of the Internet of Trust?" panel at the Russian Creative Week.

Chebeskov remarked that Minfin looks at the issue from the perspective of Russian entrepreneurs. He elaborated, "If there is a need for businesses, companies, or investors to settle, invest in a new way if they need such a tool because it reduces costs, works better than previous tools, and if we can limit the risks associated with it, we will always support such initiatives."

RBC Crypto reports that the government official noted that blockchain in general, as well as crypto assets, digitalization, and tokenization, can potentially provide an opportunity to establish an entirely new financial system. "But one cannot be completely sure that it will work better than the existing financial systems," Chebeskov commented.

The Russian Finance Ministry has been a driving force behind efforts to approve operations with cryptocurrencies in Russia, and earlier this year submitted a new bill "On Digital Currency," drafted to fill the regulatory gaps left by the law "On Digital Financial Assets." The latter only partially regulated crypto-related issues when it became effective in January 2021.

The Central Bank of Russia has consistently maintained strong opposition to allowing crypto transactions in the country while developing a digital ruble and proposing a blanket ban on crypto-related activities. However, it has softened its stance, with Governor Elvira Nabiullina stating that the regulator could agree to small-scale crypto payments in international settlements amid mounting Western sanctions against Russia.

Chebeskov’s statement comes despite the collapse of the terrausd (UST), which caused major market turbulence and a loss of confidence in stablecoins. The crypto market conditions were recently cited by the head of the Parliamentary Financial Market Committee, Anatoly Aksakov, who warned that the upcoming legislation will be "tough."