Russia might use Cryptocurrency for Arms Deals: Massive Adoption Coming?

“SoyuzMash,” the Russian Engineering Union, along with an able council from the State Duma’s defense industry commission has made a recommendation to the head of Central Bank of Russia, Elvira Nabiullina. The appeal includes the consideration of stablecoins to pay for the arms deals with foreign customers. The Russian MP and vice president of SoyuzMash, Vladimir Gutenev announced that he had personally made this suggestion with a ‘whole range of measures.’

The problematic cases where the adopted and delivered pieces of equipment are not paid for months makes it challenging for transactions to be carried out. Mr. Gutenev stated: The so-called ‘stablecoins’ are a cryptocurrency backed by material valuables, especially gold, and thus their use as payments can resolve the arising issues. Also, the unspecified amounts can be of similar help.

At the recommendation of soyuzMash’s president, Sergey Chemezov, the expert council on military and technological cooperation was established in spring 2019 to construct the technical requirements in the field of production and to diversify the defense sector. The head of the Duma Financial Market Committee of Russia, Anatoly Aksakov, indicated that the nation should execute the apparatus before 2020 to abide by the recommendations of the Financial Action Task Force (FATF).

The Russian deputy finance minister, Alexei Moiseyev, stated about the discussion of lawmakers to allow the sale and purchase of cryptocurrencies. However, he asserted that though it would be possible to buy and sell cryptocurrencies, its use as payments might be impossible.

Saloni Sheelwant
Saloni Sheelwant treasures to research and write about the new startups and technologies thriving at a very fast pace.

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