Stablecoins
continue
to
witness
notable
adoption
as
the
world’s
largest
country
Russia
is
investigating
the
use
of
stablecoins
for
international
payments
in
light
of
the
growing
financial
strain
imposed
on
it
by
international
sanctions
and
economic
difficulties.

The
move
attempts
to
circumvent
traditional
financial
channels,
underscoring
Russia’s
strategic
transition
towards
digital
assets
as
a
means
to
preserve
its
global
trade
activities
in
the
face
of
ongoing
geopolitical
tensions.
Matthew
Sigel,
the
head
of
digital
assets
research
at
VanEck

 

shared

the
development
on
the
X
(formerly
Twitter)
platform
on
Wednesday,
citing
a
piece
of
the
announcement.

Russia
Look
To
Stablecoin
For
Global
Payments

It
is
worth
noting
that

stablecoins

are
a
kind
of
cryptocurrency
intended
to
keep
a
consistent
value
pegged
to
a
reserve
of
assets,
like
conventional
fiat
currencies
and
gold.
They
provide
a
combination
of
the
efficiency
and
flexibility
of
digital
assets
with
the
stability
of
conventional
financial
institutions.​

Due
to
the
nature
of
these
coins,
the
Russian
authorities
believe
these
assets
are
a
promising
instrument
for
cross-border
transactions,
prompting
the
nation
to
consider
accepting
stablecoins
for
its
day-to-day
activities.

According
to
the
deputy
Governor
of
the
Bank
of
Russia,
Alexei
Guznov,
the
current
negotiations
are
to
develop
stablecoin
regulatory
measures.
The
purpose
of
this
proposal
is
to
create
a
legal
framework
for
the
collection
and
utilization
of
the
asset
in

cross-border
payments.

Guznov
further
pointed
out
that
this
project
might
transition
from
an
experimental
phase
to
a
more
permanent
regulatory
structure.​
However,
setting
a
deadline
for
the
project’s
completion
is
still
necessary
while
the
central
bank
makes
sure
that
any
potential
legal
troubles
arising
from
sanctions
and
international
finance
laws
are
avoided.​

 

“The
regulation
can
profoundly
affect
the
Russian
business
environment
that
deals
with
international
trade,
particularly
with
Asian
countries,”
Guznov
added.
As
a
result,
Russia
can
get
around
some
of
the
restrictions
imposed
by
sanctions
on
the
present
financial
systems
by
utilizing
stablecoins,
which
are
geared
toward
reserve
assets
and
have
a
central
issuer.

​Russia‘s
idea
of
adopting
the
coins
for
global
payments
has
been
a
major
discussion
in
the
nation
since
2023.
Now,
following
the
law
passed
by
Vladimir
Putin,
the
President
of
Russia,
authorizing
the
use
of
digital
finance
assets
for
global
payments,
the
country
can
finally
legalize
stablecoins
settlements.

The
Coins
To
See
Significant
Growth
In
Europe

This
proposal
comes
in
light
of
the
rising
discussion
around
the
EU’s
Markets
in
Crypto
Assets
(MiCA)
law.
The
MiCA
law
highlights
the
growing
significance
of
precise
jurisdiction
in
the
digital
asset
field,
poised
to
be
a
historic
regulatory
framework
for
the
cryptocurrency
market.

Patrick
Hansen,
a
senior
policy
executive
at

Circle,
has

offered

insights
on
the
impact
of
the
law
on
the
stablecoin
sector.
According
to
Hanson,
1.1%
of
Euro-denominated
crypto
transactions
are
executed
using
EUR-stablecoins,
compared
to
90%
for
USD-stablecoins.
“It
sounds
funny,
but
the
1.1%
is
actually
an
all-time
high,”
he
added.

 

Although
the
number
was
zero
a
few
years
ago,
Hansen
believes
it
can
only
get
bigger
from
here,
and
the
introduction
of
MiCA
will
help
make
EUR-stablecoins
volumes
and
liquidity
more
alluring.

Featured
image
from
iStock,
chart
from
Tradingview.com

Go to Source
Author: Godspower Owie

Recommended Crypto Services, Products and Strategies: