Cuba and Russia consider crypto currencies for settlements in the face of sanctions

Key points: 

• The Russian and Cuban governments are considering using the Russian ruble and cryptocurrencies to boost bilateral cooperation amid sanctions imposed on both countries.
• Lawmakers in the State Duma are expected to consider a new “Digital Currency” bill and a “Mining in the Russian Federation” bill. 
• In September, Russian financial authorities began working on a mechanism to facilitate payments with other countries using cryptocurrencies.
• Earlier this month, Deputy Finance Minister Alexey Moiseev announced that his ministry and the Central Bank of Russia had agreed that Russia is “inseparable from cross-border crypto payments.”

Cryptocurrencies and Rubles Considered for Trade Payments Between Russia and Cuba

The Russian and Cuban governments are considering using the Russian ruble and cryptocurrencies to boost bilateral cooperation amid sanctions imposed on both countries. The news comes from a statement by Boris Titov, the Russian presidential commissioner for business rights, who is visiting Havana. Russian economic inspectors arrive in the Cuban capital during the 38th Havana International Fair.

"All of us, Cuba and Russia, are subject to sanctions, dollar turnover is the main financial mechanism of mutual agreement in the world, but today mechanisms are being developed at the level of national governments to change this," Titov told TASS news agency.

He further said that several options are being discussed, including settlement in rubles. However, the Kremlin official also noted that companies are generally quicker to adapt and find their own payment methods, including through cryptocurrencies and private clearing systems.

The Feria Internacional de la Habana (FIHAV 2022) takes place from 14 to 18 November at the Expocuba exhibition center on the outskirts of the city, where it has been held since 1983. Company representatives from more than 60 countries will be present at the event, including Brazil and Venezuela, Spain, Italy, Canada, China, Mexico, Russia, and France.

Russian authorities have been considering a broader regulatory framework for crypto assets for several months. Lawmakers in the State Duma are expected to consider a new “Digital Currency” bill and a “Mining in the Russian Federation” bill to fill the void left by the retention of the “Digital Financial Assets” law in January. 2021

While Russia's central bank proposed a blanket ban on most cryptocurrency-related activities in January, sanctions pressure has mounted since Russia launched a "special military operation" in Ukraine in late February, prompting monetary authorities to back the legalization of the use of a proposal for a decentralized digital currency in international settlements.

In September, Russian financial authorities began working on a mechanism to facilitate payments with other countries using cryptocurrencies. Earlier this month, Deputy Finance Minister Alexey Moiseev announced that his ministry and the Central Bank of Russia had agreed that Russia is “inseparable from cross-border crypto payments.”