Russia should use crypto for payments with Africa, commerce exec says

A representative of Russia’s Chamber of Commerce and Industry called for the government to perform cross-border settlements of cryptocurrencies and central bank digital currency (CBDC)

Sergei Katyrin, president of the Chamber, wrote a letter to Mikhail Mishustin (Russian Prime Minister), containing a series of suggestions for developing cooperation with African nations, according to TASS, a local state-backed publication.

Katyrin, according to reports, advocated the use CBDCs and cryptocurrency for mutual settlement and payment as part of Russia’s move into Africa amid Western sanctions.

“It would be useful to instruct the Ministry of Finance of the Russian Federation and the Central Bank to ensure that intergovernmental agreements are made with African states regarding the use of national currencies or cryptocurrencies in mutual settlements, and payments.”

He stated that it was important to create an export-import bank to support small and medium-sized enterprises in Africa.

This news comes as many countries in Africa consider cooperation with Russia-linked Blockchain networks.

Monday saw Cameroon (DRC), the Democratic Republic of the Congo and the Republic of the Congo jointly announce their plans to adopt TON. This is the Telegram-initiated layer-1proof-of-stake Blockchain. According to reports, the DRC may also launch a new stablecoin that is built on top of TON.

Although Telegram has withdrawn from the TON project in May 2020 and Telegram does not participate in it, Pavel Durov, Telegram’s co-founder, expressed support for TON in late 2021.

The announcement stated that each country would make a gradual transition to adopt cryptocurrency as a central pillar in their economic structures.

Russia is still working to draft a federal cryptocurrency bill, after having banned residents from making payments in cryptocurrencies such as Bitcoin (BTC). The Bank of Russia launched the digital ruble test in mid-February. It successfully completed the first CBDC transfers among its citizens.

Related: Crypto users in Africa increased by 2,500% in 2021: Report

Many African countries have made progress in developing CBDCs. Countries like Kenya and South Africa reported some progress earlier this year. In an effort to encourage its use by all sectors of society, Ghana worked to create offline capabilities for its CBDC potential.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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