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Russian Chamber of Commerce Suggests Using Cryptocurrencies in Settlements With Africa

Russian Chamber of Commerce Suggests Using Cryptocurrencies in Settlements With Africa – One of the recommendations put out by the Russian Chamber of Commerce campaigning for increased collaboration with African countries is the use of crypto in cross-border payments.

In the face of extraordinary restrictions that have hampered Russia’s capacity to trade globally, the board’s chairman has pushed the government to devise a new framework for settling disputes with Moscow’s partners.

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Sergey Katyrin, President of the Russian Chamber of Commerce and Industry, submitted a letter to Russian Prime Minister Mikhail Mishustin outlining a list of ideas to improve commercial connections with African countries. The head of the Russian board of trade, among other things, campaigns for alternate payment methods.

Also Read: Indian Crypto Exchanges Disable UPI and Other Payment Options

Katyrin insists, as quoted by Tass:

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“It appears reasonable to direct the Ministry of Finance, in collaboration with the central bank, to ensure the completion of intergovernmental agreements with African governments regarding the use of national currencies and cryptocurrencies in mutual settlements and payments.”

The official is urging the federal government to establish a new export-import bank and a trust fund to support small and medium-sized businesses’ export efforts to Africa. He also wants the Ministry of Industry and Trade and Economic Development to create trade missions and free trade zones in African countries with the most potential for expanding ties.

Katyrin is encouraging the two departments to develop a new payment settlement process that includes cryptocurrency for both external and internal payments.

The method can be used to settle payments for natural resource concessions, export operations, investment projects, and other types of payments. He also advises that a Russia-Africa Trading House be established.

The President of the chamber highlights the necessity of developing this type of collaboration with “friendly territories” for the Russian Federation. His ideas come as Western sanctions imposed in response to the Ukraine conflict continue to restrict Moscow’s access to global finance and currency reserves held in foreign institutions.

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The constraints are convincing Russian officials that crypto assets can assist the country in re-entering global markets and substituting other national and digital currencies for the US dollar and euro.

While the Bank of Russia is wary of utilizing cryptocurrencies to get around sanctions, the Finance Ministry is spearheading the charge to legitimize them, claiming that the fines are motivating Russia to build its own crypto market infrastructure.

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