Call for Crypto Adoption in Trade
The leader of one of Russia’s prominent business organizations has urged the government to allow the utilization of cryptocurrencies and stablecoins for international trade. This appeal was made by Alexander Shokhin, who serves as the President of the Russian Union of Industrialists and Entrepreneurs (RSPP), during the Eastern Economic Forum held in Vladivostok on September 7.
Removing Barriers for Businesses
Shokhin emphasized the need to address persistent payment challenges in foreign trade by advocating for the removal of legislative obstacles. He stated that Russian businesses should be granted genuine opportunities to utilize any trustworthy digital currencies in cross-border transactions. The imposition of sanctions by the US, EU, and UK has created significant hurdles for Russian companies engaging with international partners.
Current State of Crypto Usage
Some Russian firms have started experimenting with digital assets such as Bitcoin (BTC) for cross-border trade. A new law recently came into effect, allowing certain companies to use cryptocurrencies as a payment method within an “experimental” regulatory framework spearheaded by the Russian Central Bank. However, many businesses consider these regulations overly restrictive and are advocating for more flexibility regarding the payment solutions they can employ.
Need for Secure Payment Solutions
“It is crucial for businesses to have practical access to all kinds of reliable digital currencies for foreign economic activities. This encompasses cryptocurrencies and stablecoins that leverage blockchain and cryptography technology,” Shokhin remarked. He also pointed out the necessity for Russian firms to access domestic alternatives to the SWIFT banking system to facilitate smoother international transactions.
Collaboration with Government Entities
Shokhin elaborated on the RSPP’s active collaboration with the Russian Ministry of Foreign Affairs to navigate the post-sanction landscape. He hinted that countries worldwide may soon look to relax restrictions to allow businesses to leverage blockchain-powered assets more freely.
Implications for Global Trade
Amid these discussions, Shokhin referenced the Business 20 (B20), which comprises 900 international business leaders, and their recent recommendations to G20 leaders. The B20 has called for a reassessment of the restrictive trade policies implemented over the past three years, just ahead of the G20 summit in São Paulo, Brazil, scheduled for October 24-25.
Focus on Sustainable Trade Practices
While the B20 did not specifically mention cryptocurrencies in their public statements, they underscored the importance of promoting sustainable and resilient trade and investment practices. Shokhin concluded that in order to enhance trade, particularly with the rise of cryptocurrency in the business sector, Moscow needs to address existing legislative barriers, especially in the realms of taxation and currency control.
Rising Importance of Crypto at Economic Forums
This year, discussions surrounding cryptocurrencies have gained increased prominence at the Eastern Economic Forum. Numerous sessions have been dedicated to topics such as cryptocurrency and Bitcoin mining. Even President Vladimir Putin has acknowledged the significance of crypto mining in his speeches during the forum. Additionally, a Russian government ministry has voiced intentions to provide miners with access to excess electrical power, a crucial resource for cryptocurrency mining operations.