Russia Set to Launch Crypto Exchanges in Moscow and St. Petersburg for Global Trade
Russia is reportedly planning to establish two cryptocurrency exchanges to facilitate foreign economic activities, according to a report by the local media outlet Kommersant on August 23.
These proposed exchanges will be based in Moscow and St. Petersburg and will serve as key centers for international trade.
Mikhail Uspensky, a member of the State Duma’s legislative committee on cryptocurrency regulation, mentioned that these exchanges will initially be available to a select group of users. Over time, they will be extended to larger firms, including exporters and importers within the country.
However, Uspensky noted that small and medium-sized enterprises, as well as individuals, are unlikely to have immediate access to these exchanges. He stated:
“It is important to emphasize once again that the contours of the future experiment are entirely at the mercy of the regulator.”
Stablecoins
To support this initiative, there are plans to issue stablecoins pegged to the Chinese yuan and a currency basket from BRICS nations.
BRICS is an intergovernmental group comprising Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates. The organization seeks to unite the world’s leading developing countries to challenge the economic and political dominance of wealthier nations.
The yuan-linked stablecoin aims to reduce reliance on the US Dollar and strengthen trade agreements among BRICS member states.
This development comes after Russia’s Deputy Foreign Minister, Sergei Ryabkov, mentioned in May that BRICS countries were considering the use of stablecoins for financial and trade transactions.
Russia’s Crypto Shift
These developments highlight Russia’s growing pivot toward cryptocurrency, a shift that has accelerated since the country faced economic sanctions due to its invasion of Ukraine.
Previously, Russia, under President Vladimir Putin, had taken a cautious approach to the emerging cryptocurrency industry. However, significant progress has been made this year.
In recent months, the Russian State Duma passed a bill legalizing Bitcoin mining and began considering the legalization of stablecoins for international payments.
Additionally, Russia has plans to further advance the use of the Russian Ruble central bank digital currency (CBDC).