Russia Finance Ministry: Local businesses to decide on digital asset use on international payments
Russia is stepping into digital assets with desperate steps. The latest innovation released by this sanctioned country is an amendment bill to regulate digital assets for neutral countries. The results show that the National Ministry of Finance will allow local companies to explicitly include digital currency in their best practices.
Ivan Chebeskov, Director of the Financial Policy Department of the Ministry of Finance of the People's Republic of China, stressed at a seminar that entrepreneurs are more suitable for scientific research on the correct use of virtual assets in payment, rather than strict supervision.
Chebeskov said: "When a large number of people solve this situation, they will find some appropriate solutions over time, which is better than the solutions that we (the government) clearly put forward that do not work for everyone.". "The area of determining how it should work will be on the company's side."
At the seminar entitled "Digital currency in overseas economic development activities: mining, payment, transfer of legal provisions", Chebeskov stressed that the measures taken by the company to participate in the decision-making process still need a certain degree of government intervention. He added that the role of the manager was undoubtedly to promote the plan, not to "thoroughly build the framework"
From Chebyskov's announcement, analysts believe that the company will be responsible for selecting the types of digital currencies, the terms of transactions with counterparties and the countries participating in the plan.
Before considering the participation of entrepreneurs in this process, Prime Minister Mikhail Mishustin required key regulatory authorities to reach an agreement on the application of digital assets for cross-border settlement. However, this move has attracted great attention, because Russia's previous position is to show its control power in all digital currency industries.
Sanctions have made Russia think carefully
After Russia invaded Ukraine in February, the host country suffered a series of sanctions from the United States and other western countries. The banks in the host country are driven out of the SWIFT Internet, and basically cannot conduct international transactions.
Russia announced plans to use digital assets to carry out international transactions to mitigate the serious harm of sanctions. On September 5, Russian financial institutions withdrew their strong views on digital currency and recognized that they had brought a way to circumvent the sanctions imposed on cross-border payment platforms. Although its local application has been prohibited.
According to the bank supervision organization, local digital asset service providers will be at the forefront of national diligence, and they are "responsible for compliance management and understanding customer requirements"