Chainalysis: Russia is building cryptocurrency infrastructure to evade Western sanctions

ChainCatcher news, the latest report from blockchain analysis company Chainalysis points out that Russia is building financial infrastructure to use cryptocurrency for international trade and evade Western sanctions. The report emphasizes that a bill recently passed by the Russian parliament legalizes cryptocurrency mining and allows the use of cryptocurrency for international payments. These bills were signed into law by President Putin on August 8, and a pilot program for crypto payments will begin this September. The Central Bank of Russia (CBR) will oversee the pilot for cross-border cryptocurrency transactions and is testing the digital ruble, which is expected to launch in 2025.

Valerie Kennedy, head of investigations at Chainalysis, stated that the CBR is leading the way in integrating cryptocurrency into the Russian financial system for cross-border payments. The report notes that centralized cryptocurrency exchanges within Russia, such as Garantex, may be used to process cross-border payments.

Chainalysis also stated that Russia is exploring other methods to bypass Western sanctions, including blockchain initiatives with BRICS countries and a potential collaboration with Iran to launch a gold-backed stablecoin.