Russia is taking a major step toward integrating cryptocurrencies into its foreign trade strategy by opening two new cryptocurrency exchanges in Moscow and St. Petersburg, respectively. The development is part of a broader effort by the country to navigate the challenges of international trade amid ongoing sanctions and regulatory barriers.
Russia’s Crypto Strategy: A New Exchange for Global Trade
According to Kommersant, the Russian authorities are moving forward with plans to create two cryptocurrency exchanges. The first exchange will operate through the existing St. Petersburg Currency Exchange, while the second will operate in Moscow. The operating structure of the Moscow exchange is still controversial, with discussions focusing on whether it should function as part of the Moscow Exchange or as a separate legal entity under special legal provisions.
The move is designed to strengthen Russia’s position in the global cryptocurrency market, especially as Russia seeks to ease the impact of Western sanctions. By launching these exchanges, Russia hopes to facilitate foreign trade transactions bypassing traditional financial systems that are becoming increasingly difficult to access due to geopolitical tensions.
Stablecoins and Legal Issues
In addition to launching a new exchange, Russia is also exploring the introduction of a stablecoin pegged to the Chinese yuan (RMB) and potentially linked to a basket of BRICS currencies. The initiative is part of a larger effort to strengthen financial ties with major global economies and diversify Russia’s crypto portfolio.
However, the creation of these stablecoins is not without its challenges. Oleg Ogienko, CEO of BitRiver, highlighted the significant challenges associated with the convertibility and liquidity of these digital assets. Under Russian law, stablecoins are classified as digital financial assets, which means that the issuing entity must maintain their value. This can be a complex task under current international financial constraints.
Experimental legal framework and potential risks
The proposed exchange and stablecoin will operate under an experimental legal framework, allowing Russia to fine-tune its cryptocurrency regulations. Initially, these platforms will be available only to large corporations and major economic players, and later they will be accessible to small businesses and individuals.
This strategy could provide new opportunities for Russian companies in international trade, but it also carries significant risks: the inherent transparency of blockchain technology could expose transactions to global scrutiny, increasing the likelihood of additional sanctions or restrictions.
Nikita VasevTerraCrypto founder, expressed concern about the potential success of these new exchanges. He pointed out that unless there is no other choice, most users may prefer existing international platforms over newly created domestic platforms. Vassev also pointed out that the centralized nature of these exchanges could undermine user trust, further complicating adoption.
Also read: Russia’s Cryptocurrency Ban: Understanding the Controversy