The Russian Central Bank has unveiled plans to allow domestic corporations to buy foreign stablecoins, but looks set to bar them from buying USDT and USD Coin (USDC).
Per an official Central Bank notice and a report from the Russian media outlet RBC, the bank has put its proposal up for public discussion. It will invite comments on the plan until June 15.
Russian Stablecoins Plan
According to the draft proposal, the bank wants to let Russian legal entities that do not meet the criteria of “qualified investors” to acquire “foreign digital rights.” The bank said that trading in these assets should be allowed “without any restrictions.”
The USDC market cap over the past month. (Source: CoinGecko)
RBC wrote: “Some cryptocurrencies, in particular stablecoins, may fall under the bank’s definition” of foreign digital rights.
However, the same media outlet pointed out that the rule change would likely not open the door for Russian firms who wish to trade coins like USDT and USDC.
In mid-May, the bank updated its requirements for overseas assets allowed to circulate on the Russian market.
The new requirements expressly outlaw assets that are underpinned by “securities issued by unfriendly issuers.”
They do, however, make an exception for firms who use USDT and USDC as a payment tool in in cross-border trade deals.
US Treasury Bill Reserves: A Problem for Russia?
Tether’s reserves are reportedly mainly comprised of cash, cash equivalents, short-term deposits, and US Treasury bills.
Source: @OllieF/Dune
Circle, the USDC operator, also holds much of its reserves in the form of short-dated treasuries held in regulated, sanctions-compliant domestic banks.
However, the proposed rule change would open the door for Russian firms to do stablecoin-powered business with BRICS nations and other Moscow allies.
Following the most recent BRICS Summit, held in Kazan, Russia, in October 2024, a number of tech players in India and elsewhere announced stablecoin plans for the bloc.
BRICS players have also floated the idea of creating a gold-backed stablecoin that would do away with the need for dollar-denominated trade.
Beijing and Hong Kong have also talked up the idea of adopting stablecoins that do not make use of USD-related assets.
Moscow, meanwhile, has been exploring its own stablecoin options, as well as digitized securities.
DFAs Rule Change Imminent
The size of Russia’s digital financial assets (DFAs) market is also continuing to increase. The bank’s latest plans also propose lowering the threshold for market entry.
At present, qualified investors can only spend a maximum of 600,000 rubles ($7,570) per year on DFAs. But the bank wants to almost double this limit.
The bank proposes allowing citizens to buy a maximum of 1 million rubles ($12,618) worth of DFAs per year.
The document stipulates that all Russian legal entities will be able to acquire DFAs without any restrictions, regardless of whether or not they have qualified investor status.
The bank noted that this will allow firms to use DFAs more actively. The regulator suggested this move could help firms solve commercial issues.
If the proposal does not receive major objections, the bank could turn its proposal into binding guidelines for the domestic banking sector.
These could come into force before the end of the month, the Central Bank explained.
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