Investing.com – With limited access to the global financial system, Russian companies have started making cryptocurrency settlements with their foreign partners. Although these are still small-scale payments, government officials have noted their increase, which comes before authorities have even decided how to regulate these transactions.
Indeed, these cross-border settlements in cryptocurrencies are on the rise in Russia while payments in US dollars and euros are decreasing.
Russian entities are now actively using digital payment instruments, including cryptocurrencies, explained Vladimir Gamza, head of industrial, financial and investment policy at the Council of the Chamber of Commerce and Industry of the Russian Federation. .
As part of the measures adopted in response to Russia’s invasion, Russian banks were cut off from SWIFT, the global payment messaging system.
The leader added that digital currencies are now mainly used in settlements with what he called “unfriendly countries”, mainly for Russian exports and in import component payments for the manufacturing sector.
Cryptocurrencies are also used to pay for the import of consumer goods. In the context of the sanctions, the volume of cross-border transactions in crypto could potentially be multiplied, predicted Vladimir Gamza.