Chairman of the Russian State Duma Committee on the Financial Market Anatoly Aksakov stated that digital financial assets, issued by institutions regulated by the central bank, could replace fiat channels for international settlements. Aksakov also acknowledged that while not being controlled for this use case, digital assets were already being used to settle international payments.
Russian Duma Financial Market Chairman States Digital Financial Assets Might Replace Fiat for International Payments
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Russian Duma Financial Market Committee Head Talks Digital Financial Assets as Fiat Replacements
Russia is mulling the use of alternative payment systems to expedite international settlements. Chairman of the Russian State Duma Committee on the Financial Market Anatoly Aksakov stated that he expects digital financial assets will be harnessed for international payments starting this year.
Russian President Vladimir Putin recently approved a law that regulates the use of digital financial assets for these payments. Aksakov detailed that there were institutions interested in using these for this use case. “I know that several organizations are now preparing mechanisms for implementing the adopted decisions,” he stressed.
Furthermore, Aksakov believes these digital tools can become relevant for substituting current payment methods, that limit Russia’s access to some markets.
He explained:
It’s quite possible that this will be a serious channel to replace fiat currencies in international transactions.
Aksakov had targeted using these assets for sidestepping economic sanctions since the passing of the law enabling these operations. At that time, he stated that the law was “historic,” detailing that the bill would allow bypassing the banking system to minimize the external influence on payments. “Today, such payments go through the banking system, and they are visible to enemies who put pressure on banks,” he lamented.
On the matter of using cryptocurrencies for international payments, he recognized that they were used to fulfill this use case without being supported by any regulation. However, he hopes to issue a regulation to control these payments.
Last week, Governor of the Bank of Russia Elvira Nabiullina stated the bank would support a law enabling international cryptocurrency payments, but only under an experimental regime.
What do you think about Aksakov’s view of digital financial assets substituting fiat for international payments? Tell us in the comments section below.
