The war conflict may well bring the most important turning point in cryptocurrency history

We all know that this is true - the price of cryptocurrencies has fallen and is not changing much now. And that always brings with it a general negative sentiment and retail aversion to cryptocurrencies. It's sort of a symptom of the ongoing bearmarket. Given the problems the world is facing right now, it's quite understandable. But one of these pressing issues could be the impetus that puts the wind back in the sails of cryptocurrencies!

Everything bad is good for something. Cryptocurrencies in particular could benefit from the current situation

Surprisingly, that impetus could be the war in Ukraine and sanctions against Russia. The Russian Central Bank has reportedly admitted that cross-border payments in cryptocurrencies are inevitable in the current geopolitical climate. Which would of course necessarily mean greater adoption and theoretically a boost to cryptocurrencies' return to prominence.

Russia's central bank is rethinking its approach to cryptocurrency regulation and has agreed with the Finance Ministry to legalize cryptocurrencies for cross-border payments, the TASS news agency reported. Deputy Finance Minister Alexei Mosseyev reportedly said that the Russian Central Bank and the Finance Ministry expect to legalize cross-border cryptocurrency payments soon.

Moiseev outlined the importance of enabling local crypto services in Russia, adding that many Russians rely on foreign platforms to open crypto wallets. "It is necessary to do this in Russia and involve entities supervised by the central bank, which are obliged to comply with anti-money laundering and know-your-customer requirements," the official said. I'm very curious about this one then 😂

"It is important to stress that we are not talking about legalizing cryptocurrencies as a means of payment in our country" Still, this is a pretty big step.

Russian lawmakers have opposed the idea of using cryptocurrencies as a means of payment in the past. In 2020, Russia passed a landmark crypto-law "On Digital Financial Assets" that officially banned the use of cryptocurrencies - specifically, it was mainly $BTCUSD+0.3% - for payment purposes. Russia's Central Bank was skeptical of the idea of cryptocurrency payments because it wanted to protect the Russian ruble as the only legal tender in the country.

This decision to ban cryptocurrencies has been quite a big topic in the media

The idea of crypto payments for domestic transactions in Russia emerged in late 2021. At the time, Russian President Vladimir Putin said it was "still premature" to use crypto for transactions in energy resources such as oil and gas.

But the situation has understandably changed in the wake of Western economic sanctions following Russia's invasion of Ukraine. In May, the Minister of Industry and Trade said that Russia would "sooner or later" legalise crypto payments. Russian Central Bank Governor Elvira Nabiullina also later suggested that crypto could be used for cross-border payments, but only if crypto does not enter Russia's domestic financial system.

This chart is probably familiar to all of us by now. Values are already hitting the $18,000 mark again.

The exact design is still uncertain

The question of exactly how Russia plans to differentiate between domestic and cross-border cryptocurrencies has yet to be answered, Agranovskaya noted. "This distinction does not exist yet. All foreign cryptocurrencies are considered digital currency and that's the end of it for now," she said, adding:

"At the moment, it's completely unclear. I assume the matter would be in line with currency control regulations - tax residents in the local territory would not be allowed to use crypto for internal payments."

So it's hard to say how and (if ever) this move will actually come about. If it does, it would probably be at the very least a very positive boost for cryptocurrencies in general. Also from the realm of speculation is an idea that was floated on the internet for a while - that Russia might accept crypto payments for its gas. Such a thing would trigger what could perhaps not even be called a bullrun. However, this is really just sheer speculation and a science fiction scenario, which is probably what we all feel.

Could Russian crypto payments bring a fresh wind to the sails of cryptocurrencies that are in the doldrums?

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Disclaimer: This is in no way an investment recommendation. This is purely my summary and analysis based on data from the internet and a few other analyses. Investing in the financial markets is risky and everyone should invest based on their own decisions. I am just an amateur sharing my opinions.

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