Russia Proposes Crypto Fund for Cross-Border Transactions

RSPP has proposed the creation of a crypto fund to facilitate international transactions amidst sanctions, according to Vedomosti.

Andrey Lisitsyn, Managing Director of the Financial Policy and Financial Markets Department of the organization, stated that the fund would consist of cryptocurrencies mined within the country.

Due to legal restrictions, the introduction of digital assets into domestic circulation is not anticipated.

The next step could involve issuing DFAs linked to the crypto fund.

The RSPP explained that transactions with counterparties would be conducted through claims on digital assets (by issuing DFAs). This would prevent their circulation and, consequently, speculative demand in the domestic market.

“Such an instrument is completely legal within Russia,” Lisitsyn clarified.

He suggested that the crypto fund could be established in a special administrative region, a sort of offshore, where authorities would allow miners to open accounts and “offload” mined cryptocurrency.

The fund could be either state-owned or private, Lisitsyn added.

In June, Deputy Finance Minister Ivan Chebeskov announced that BRICS countries’ regulators were preparing the BRICS Bridge platform for transactions in national digital currencies.