Russia to Launch Exchanges for Domestic Cryptocurrencies with Emphasis on Stablecoin

In the recent past, there have been rumors that Russia had plans for launching not less than two local cryptocurrency platforms. It will also encompass Yuan pegged stablecoins such as the CBDC, and other stablecoins anchored on a composite of the leading emerging market currencies known as the BRICS currencies.

New exchanges to be established

The exchanges are expected to be in Moscow and St. Petersburg whereas the clearing members are expected to be located in some of the European countries. The Moscow exchange can operate in parallel to the Moscow Stock Exchange or it can operate under new experimental legislation. The St. Petersburg exchange could fall back on the framework of the St. Petersburg International Mercantile Exchange.

First, the exchanges will get started with just a couple of users, then additional the large exporting and importing firms and other related enterprises subsequently. It is not really intended to carry the day to day business of trading cryptocurrencies but more to facilitate the establishment of stablecoins.

Aligns with Regulatory Discussions

This is so given that the opening of the domestic crypto exchanges is in harmony with the discussions between Russia’s Finance Ministry and the Central Bank on the use of cryptocurrencies. However, it must be understood that there is no clear activities taken up to this time and up to the present also the bargaining is still on.

This follows recent developments in Russia which has legalised cryptocurrency mining, and indications that it is mulling over the possibility of creating an intermediary digital currency that will be backed by gold from the central bank. However, the gold-backed token initiative has remained but a concept and did not make any further progress.

Stablecoins for Cross-Border Payments

According to the newspapers, Russia wants stablecoins to be a one-stop-shop for repeated problems in cross-border payments existing in the business universe. The exchanges could afford the companies a sound basis of operating cross-border deals.

First of all, the exchanges may be aimed at developing stable coins tied to the yuan as Russia increases cooperation with China because of sanctions. Another is the strive to introduce a reserve linked to the basket of BRICS currencies as a stablecoin.

They can be pilot projects under special legal regime

For now, the cryptocurrency business in Russia complies with the law “On Digital Financial Assets,” which regulates the situation with digital assets. Nevertheless, the status of the crypto exchanges is still rather undefined in terms of regulation.

Consequently the planned exchanges will emerge as pilots and will function in accordance with the special experimental legal circumstances. In Russia, it assists the state in encouraging the creation of crypto exchanges and stablecoins when the corresponding legal regulation is still under development.

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