Recently, Russia was expelled from the international financial messaging network, the Society for Worldwide Interbank Financial Telecommunication (SWIFT)
Russia, which has been excluded from the international financial messaging network, has decided to promote a plan to recognize virtual currency as a legal means of payment. [Image source=Yonhap News]
[Asia Economy Reporter Kang Woo-seok] Russia, which has been excluded from the international financial messaging network, is planning to recognize cryptocurrency as a legal means of payment.
According to Reuters, Denis Manturov, Russia's Minister of Industry and Trade, stated at a forum on the 18th (local time) that cryptocurrency will soon be recognized as a legitimate payment method, and that they are actively discussing with the central bank the timing and regulatory methods for recognizing cryptocurrency as a payment method.
He also added that the government will take action after the central bank establishes regulations on cryptocurrency.
The Russian government granted legal status to cryptocurrency in 2020 but clashed with the central bank over recognizing it as a legal payment method.
The Bank of Russia argued that the use of cryptocurrency poses risks to public welfare and the safety of the financial system, and insisted on a complete ban on cryptocurrency mining and trading. In 2018, when the Ministry of Finance announced the "Digital Financial Assets Act" to manage the issuance and distribution of cryptocurrency, it also expressed the position that issuance and distribution of cryptocurrency should be strictly controlled.
Initially, the Russian government was reluctant to recognize cryptocurrency as a payment method due to concerns that it could be used for illegal activities, but recently changed its stance, with the Ministry of Finance proposing a bill in February that includes recognition of cryptocurrency as a payment method.
According to data released by the University of Cambridge in October last year, Russia ranks third in the world for cryptocurrency mining, following the United States and Kazakhstan.
Additionally, the Bank of Russia estimated in a report from January that the annual cryptocurrency transaction volume of Russian citizens reaches $5 billion (approximately 6.38 trillion KRW).
Meanwhile, Russia was recently excluded from the international financial messaging network, the Society for Worldwide Interbank Financial Telecommunication (SWIFT), by the West following its invasion of Ukraine.
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