YEREVAN (CoinChapter.com) — Russia Tether-based payments platform promises to help the country with cross-border payments, made difficult since the Russia-Ukraine war started in Feb 2022. In detail, the new settlements system Exved is designed to facilitate simplified business-to-business (B2B) cross-border payments and foreign trade activities for domestic companies.
Russia Tether Payments
Notably, Exved offers an intermediary-free venue, allowing Russian entities to conduct international transactions more affordably using stablecoins like Tether (USDT), foreign currencies, and offshore rubles.
Exved serves as a “digital counterparty search system,” aiming to help Russian legal entities bypass middlemen when exporting or importing goods, thereby reducing transaction costs significantly. It supports transactions using Tether, alongside traditional currencies like the US dollar and the offshore ruble, offering flexibility and minimizing market rates for cross-border payments.
The development and launch of Exved have seen major industry partners’ involvement, including InDeFi Bank, which previously launched a decentralized crypto ruble project in 2022. The platform’s internal mechanics have been tested and approved by the Bank of Russia and the Federal Financial Monitoring Service of the Russian Federation, ensuring compliance with Anti-Money Laundering and Counter-Terrorist Financing measures.
Crypto Transactions In Russia Tripled
This initiative is part of a broader move by Russia towards embracing cryptocurrency for international transactions. While Exved itself is a private-sector initiative. However, it saw a supportive stance of Russian authorities. This approach aims at alleviating economic frictions and enhancing the efficiency of cross-border transactions, particularly in the context of ongoing economic challenges and sanctions.
Moreover, Russia’s cryptocurrency landscape has undergone significant changes, particularly since the onset of the Russia-Ukraine war. The country has seen a notable increase in crypto transactions.
In 2023, the number of cryptocurrency transactions in Russia tripled, with over 185,000 transactions recorded in the first nine months of the year, almost doubling the volume of transactions compared to the previous year.
This surge might be due to the increasing interest in cryptocurrencies as an alternative means of transaction. The situation is more dire, especially in light of the economic sanctions imposed on Russia.
Russian Regulators Support Crypto
Regarding regulations, Russia has been actively working on setting up a legal framework for cryptocurrencies. The country has been focusing on establishing rules for private companies to set up crypto trading platforms, supervised by the Central Bank of the Russian Federation.
This approach indicates a shift from the initial plans to create a national crypto exchange to a more decentralized model involving private players.
As for the impact of the Russia-Ukraine war on the crypto scene, the conflict has undoubtedly accelerated interest in cryptocurrencies within Russia. The war’s onset seems to have catalyzed the shift in Russia’s approach to cryptocurrencies, viewing them as a potential tool to circumvent international sanctions and maintain financial operations.
Notably, the number of illicit cryptocurrency transactions has also doubled in Russia in 2023, according to Yury Chikhanchin, the head of the Russian Federal Service for Financial Monitoring (Rosfinmonitoring).
Nonetheless, Chikhanchin pointed out that the Transparent Blockchain, a software system jointly launched by Rosfinmonitoring and Russia’s VTB Bank, makes it possible to track and investigate these suspicious transactions.
