The Bank of Russia expects the first international payment in cryptocurrency to occur before the end of this year, Governor Elvira Nabiullina told reporters.
“We continue to expect that the first transactions will take place before the end of this year. There is interest from the market participants, but since this experimental legal regime concerns international settlements, we keep it closed. We do not disclose information on participants, or on the number of transactions,” the Central Bank head told a news conference in Moscow.
The new legislation enacted on September 1 allows businesses to use cryptocurrencies in international trade under an experimental legal regime. The opportunity to transact internationally via crypto gave rise to positive expectations in the market, explains Artur Leyer, Managing Partner at Lex Alliance, Vice President of the Association of Exporters and Importers.
In addition to the legal framework, trade agents are now waiting for the deployment of relevant tech systems to actually execute the payments, the expert notes.
Elvira Nabiullina confirmed that the first cryptocurrency transactions as part of the experiment are expected to take place by yearend, which suggests the necessary infrastructure will be in place soon. This is especially relevant in the face of the current restrictions on cross-border payments. Businesses have been forced to use various workarounds, but cryptocurrency can become one of the most effective tools for international transactions, the expert believes.
“The market is looking forward to the new opportunities that will allow all participants in foreign economic activity to take advantage of cryptocurrency transactions,” Artur Leyer concludes.