Russia To Launch Crypto Exchanges In Moscow And St. Petersburg: Is A New BRICS Stablecoin Coming?
By Benzinga
Russia is set to launch two major cryptocurrency exchanges in Moscow and St. Petersburg as part of its strategy to enhance foreign economic activity and reduce dependence on the U.S. dollar.
What Happened: The initiative also includes plans to develop a stablecoin pegged to the Chinese yuan, strengthening economic ties within the BRICS nations.
One of the exchanges is expected to utilize the St. Petersburg Currency Exchange (SPCE) infrastructure, while the Moscow platform may be developed on the existing Moscow Exchange or as a separate entity under a new legal framework.
These exchanges will primarily focus on stablecoins, which are cryptocurrencies pegged to assets like national currencies. Russia is exploring the creation of stablecoins linked to the Chinese Renminbi (RMB) and a potential BRICS currency basket.
This move aligns with BRICS nations’ efforts to reduce reliance on the dollar by leveraging crypto and blockchain technology.
However, the development of a BRICS stablecoin and these exchanges faces significant challenges, including technological complexities and regulatory hurdles.
Russia’s current legal framework, under Federal Law No. 259 “On Digital Financial Assets,” does not specifically address cryptocurrency exchanges.
The Experimental Legal Regime (EPR) might provide the necessary legal foundation, but clarity and unified guidelines are still lacking.
Initially, the exchanges will be accessible only to a select group of major exporters and importers, often referred to as “blue chips.”
Despite the potential benefits, the project carries significant risks due to international sanctions. Blockchain’s transparency could expose transaction data, leading to blocked transactions if linked to Russian exchanges.
This could impact not only those directly involved but also future holders of these digital assets.
Experts like Nikita Vassev, founder of TerraCrypto, suggest that only those with no alternatives would use these domestic platforms, as established international exchanges remain more attractive.
Russia’s recent legalization of crypto mining and India’s ongoing efforts to develop a crypto regulatory framework highlight the growing global focus on digital finance within BRICS.
What Happened: These developments will be key topics at Benzinga’s Future of Digital Assets event on Nov. 19, where experts will explore the global implications of Russia’s crypto initiatives and the future of digital finance.
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