The Bank of Russia has announced plans to establish new institutions to mine cryptocurrencies and facilitate international payments in an attempt to offset global sanctions against the country following the invasion of Ukraine in 2022. The initiative includes the creation of “special authorized organizations” for cryptocurrency mining and international settlements. However, the central bank has stated that the use of cryptocurrencies within the country will remain prohibited. Bank of Russia deputy chairman Aleksey Guznov said that discussions with the government were underway to determine the scope of activity of the new companies.
Gabby Kusz, CEO of the Global Digital Asset & Cryptocurrency Association, noted that Russia and other countries were recognizing cryptocurrencies as a fundamental change in the way organizations exchange value. This move could also have an impact on the global financial system, including the United States’ relevance to the future of finance in the digital era.