Russia is reportedly planning to launch two state-backed cryptocurrency exchanges and Chinese Yuan-backed stablecoin.
Local media outlet Kommersant reports today that the cryptocurrency exchanges will launch in two major cities- Moscow and St. Petersburg.
The upcoming St. Petersburg-based crypto exchange will commence operations using the infrastructure of the St. Petersburg Currency Exchange (SPCEX). However, the authorities are yet to decide whether the Moscow-based exchange will be developed as a single entity or built on the foundation of The Moscow Exchange (MOEX).
Exchanges to Develop New Stablecoins
Even though the two exchanges will operate in two different Russian cities, they will both focus on developing a stablecoin tied to the Chinese Renminbi (RMB) Yuan and the BRICS currency basket. The stablecoin will be issued at a 1:1 ratio, thus maintaining price stability.
According to the report, both exchanges will operate under an experimental framework. The trading platforms will support foreign economic activity, especially by integrating digital payments for trade settlements.
Reason Behind Move
Russia has been making significant efforts to bypass global sanctions, especially from the United States, which blocked the country from accessing the SWIFT interbank messaging system.
The latest effort involves creating two new exchanges and a stablecoin tied to the Chinese Yuan and the BRICS basket of currencies to keep Russia’s economy afloat.
Additionally, the upcoming crypto exchanges and stablecoin will also bolster economic activities among BRICS nations (Brazil, Russia, India, China, and South Africa).
Before now, these countries have been focused on ditching the U.S. Dollars (USD) for trade settlements. Interestingly, the stablecoin and exchanges could facilitate digital payments among BRICS nations, especially Russia. Nonetheless, experts still think the project could face significant limitations and be subjected to international sanctions.
Russia Legalizes Crypto Mining
Meanwhile, Russia has been pivoting towards blockchain and cryptos in recent times. As reported earlier, President Vladimir Putin recently signed into law a legislation legalizing crypto mining in Russia.
The law, which recognizes crypto mining as a legitimate business activity, requires Russian legal entities to register with the government to mine digital assets.
Individual miners are exempted from registering with the government if they operate within the prescribed energy consumption limits.
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