Russia is reportedly exploring the establishment of two crypto exchanges to facilitate foreign economic activities, local media outlet Kommersant reported on Aug. 23.

The proposed exchanges will be located in Moscow and St. Petersburg, serving as hubs for international trade.

Mikhail Uspensky, a member of the State Duma’s legislative committee on crypto regulation, stated that these exchanges will initially be available to a limited number of users. However, they will eventually be made available to major firms, including exporters and importers in the country.

Further, he noted that small and medium businesses and individuals are unlikely to gain immediate access to the exchanges. He stated:

“It is important to emphasize once again that the contours of the future experiment are entirely at the mercy of the regulator.”

Stablecoins

To support this initiative, there would also be efforts to issue stablecoins pegged to the Chinese yuan and the BRICS currency basket.

BRICS is an intergovernmental group that includes Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates. The organization aims to unite the world’s leading developing nations to challenge wealthier countries’ economic and political influence.

The Yuan-linked stablecoin is intended to reduce reliance on the US Dollar and strengthen trade agreements among BRICS member states.

Meanwhile, this development follows a statement by Russia’s Deputy Foreign Minister, Sergei Ryabkov, who indicated in May that BRICS nations were considering stablecoins for financial and trade transactions.

Russia’s crypto pivot

These moves further reflect how Russia’s pivot towards crypto has accelerated since facing economic sanctions over its invasion of Ukraine.

Previously, the Vladimir Putin-led country had taken a cautious approach to the emerging industry but has made significant strides toward embracing it this year.

Over the past months, the Russian State Duma passed a bill legalizing Bitcoin mining and also began considering legalizing the use of stablecoins for international payments.

Additionally, the country has plans to advance the use of the Russian Ruble central bank digital currency (CBDC).