Russia’s Tech Giant Rostec to Test Digital Asset Payments in International Trade

Rostec, Russia's largest technology company is currently working on a project that will integrate digital assets into cross border trade. According to the state-owned company, cryptocurrency payments could reduce sanctions on Russian importers and exporters.

Rostec Eyes Russky Island to Test Digital Currency Payments

Rostec, Russia's largest industrial and technology conglomerate is preparing to launch a project to integrate cryptocurrencies into cross-border transaction. It will be important to reduce the negative consequences of sanctions on Russian exporters and importers who are under increasing pressure.

Financial restrictions imposed in the West by Moscow's military intervention into Ukraine have had a devastating effect on Russia's economy and foreign trade operations. Officials are now supporting proposals to legalize digital financial assets for deals with partners. These include stablecoins, cryptocurrencies and the upcoming digital ruble.

Rostec's managing director for national projects Anna Sharipova revealed that Rostec is looking into the possibility of using digital assets to pay for exports and imports. The experimental legal regime for electronic trade on Russky Island off Vladivostok will be used to conduct trials. This is the second-largest Russian Far East city. quoted the high-ranking executive as saying that cryptocurrency is being introduced into international trade relations. Sharipova explained that although they are separated by borders, consumers and suppliers want modern, efficient settlement systems to deal with the various sanctions restrictions. Rostec experts are working on a launch strategy, which is being supported by local authorities and market participants.

Vladivostok's news comes after Alexey Moiseev, Deputy Finance Minister, revealed that his department and Central Bank of Russia had studied cryptocurrency and came to the conclusion that the Russian government must legalize and regulate international digital asset payments as soon as possible. Anatoly Aksakov (head of the Financial Market Committee of the State Duma) also called for the adoption a relevant legal framework. Later, Bank of Russia indicated that it will also promote its digital ruble to the same end.

Late August, Mikhail Mishustin, the Russian Prime Minister, praised digital assets for being a "safe option" that could ensure uninterrupted international payments. Rosfinmonitoring's head, Yuri Chikhanchin, stated that crypto payments were acceptable for foreign trade in July. Rostec, which is a blockchain-based company, announced in June that it had created a blockchain-based alternative for the SWIFT global payment messaging system, from which many Russian banks were disconnected. This system facilitates international settlements as well as the storage of digital currencies.

Are you optimistic that Russia will soon use digital assets for foreign trade? Please comment below with your views.

By: Lubomir Tassev
Title: Russia’s Tech Giant Rostec to Test Digital Asset Payments in International Trade
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Published Date: Mon, 12 Sep 2022 05:30:17 +0000

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