To circumvent sanctions, Cuba and Russia would develop an international crypto payment system.
Russian representative Boris Titov made the announcement at the 38th multisectoral international conference, FIHAV-2022, held this week in Havana. According to him, the purpose of this crypto payment system would be to escape the sanctions imposed on the two countries.
Russia and Cuba: two economically isolated countries
The United States imposed an economic embargo on Cuba in February 1962, just after the Cuban Revolution and the establishment of a communist system.
Russia, for its part, has been subject to international sanctions over its invasion of Ukraine earlier this year. These sanctions isolated the country from the global financial system.
According to Boris Titov, “the US dollar is the main financial mechanism” for making international payments. Therefore, the governments of both countries have decided to develop a technology that could serve as an alternative.
“I know there are several options being considered, including [les paiements] in rubles,” he said. “The issue of reciprocal payments in cryptocurrencies and the possibility of paying through clearing mechanisms and private systems are also under discussion,” Titov added.
Rise in the number of crypto payments in Russia
In September, the Russian Ministry of Finance proposed a cryptocurrency law with the aim of creating a regulatory framework for crypto payments. The bill also contains a list of currencies and third countries to be included in the payment system.
However, Ivan Chebeskov of the Financial Policy Department describes this system as a “mechanism for business”. According to him, companies will largely determine the practical side of the relevant bill.
Similarly, Mr. Chebeskov recently said that the number of crypto payments has increased significantly since the beginning of the year, but without mentioning the companies that make these types of payments.
Also, the head of the Russian Chamber of Commerce, Vladimir Gamza, claimed that companies mainly use cryptocurrencies in their transactions with “hostile” countries, including Norway, Singapore, the United States and Ukraine.
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