Russia Developing Sovereign Infrastructure to Ease Cryptocurrency Operations

Deputy Finance Minister Ivan Chebeskov stated that this move would be focused on establishing an experimental framework for facilitating cryptocurrency operations. The infrastructure would already be in development in a joint operation with the Bank of Russia, which already allows qualified investors to dabble in crypto investments.

Russia Moving to Establish Key Infrastructure to Govern Cryptocurrency Operations

Russia is working to facilitate the adoption of cryptocurrency transactions through sovereign infrastructure, addressing the challenges associated with these alternative assets. According to TASS, the official Russian news agency, this infrastructure would enable an experimental legal framework to expand the use of these assets in previously unexplored areas.

While the Bank of Russia and the State Duma have spearheaded the advancement of a national cryptocurrency framework, the country still lacks state-sponsored infrastructure governing crypto transactions from several parties to leverage the advantages of these assets.

Quoted by TASS, Deputy Finance Minister Ivan Chebeskov stated:

The market is telling us that we need infrastructure. We need our own infrastructure, including for mining and everything related to cryptocurrencies.

The nature and objectives of this infrastructure were not detailed by Chebeskov, who added that the market expected this development to facilitate cryptocurrency operations. The infrastructure solution is already in joint development with the Bank of Russia, Chebeskov noted.

While the Bank of Russia has opposed the usage of cryptocurrency as a means of payment in the country, it has supported its usage as a key element to sidestep payment hurdles in international settlements.

This infrastructure could be part of a national exchange, including miners, traders, and companies seeking to address their international payments problems using cryptocurrency. The Bank of Russia has allowed national institutions to offer cryptocurrency-based investment tools to qualified investors with high risk tolerance.

Local analysts have voiced concerns about Russia’s dependence on international cryptocurrency custody firms, explaining that relying on these poses a high risk due to the involvement of Russia in the Ukrainian conflict and the sanctions targeting Russian assets. The proposed infrastructure could also become a solution to these challenges.