Russian lawmakers passed a bill on Tuesday that will allow businesses to use crypto currencies in international trade, as part of efforts to skirt Western sanctions imposed after Russia’s invasion of Ukraine. From a report:
The law is expected to go into force in September, and Russian central bank Governor Elvira Nabiullina, one of the backers of the new law, said the first transactions in cryptocurrencies will take place before the end of the year. Russia has faced significant delays in international payments with major trading partners such as China, India and the United Arab Emirates after banks in those countries, under pressure from Western regulators, became more cautious.
“We are taking a historic decision in the financial sphere,” the head of the Duma lower house of parliament, Anatoly Aksakov, told lawmakers. Under the new law, the central bank will create a new “experimental” infrastructure for cryptocurrency payments. Details of the infrastructure have yet to be announced.
Russia is having a war against inflation and they are not controlling it well. Because there is a shortage of manpower due to the war and that causes wage increases which means an increase in things in a cycle that if you don’t manage it well, it will explode in your face.
Added to this is the fact that it has a higher war expenditure than its monetary reserves.