REC Develops Cross-Border 'Digital Sandbox' for Crypto-Settlements

The Russian Export Center (REC, part of VEB.RF Group) is working on developing a cross-border 'digital sandbox' for settlements in cryptocurrency, Veronika Nikishina, head of the Russian Export Centre said at the St. Petersburg International Economic Forum (SPIEF-2022).

"The Russian Export Center considers digital payment instruments to become one of the promising ways to provide alternative options for cross-border settlements in a restricted environment", the REC head noted.

Nikishina added that the REC sees promise in creating a cross-border "digital sandbox", the purpose of which would be to create opportunities for fintech companies to safely "test run" settlement processes using digital means of payment with actual exporters and importers in international settlements.

"An alternative payment system, which I am sure will now develop incredibly quickly, is the settlement in cryptocurrencies. As a development institution, which captures all current trends, in addition to traditional activities, we are now closely examining the possibility of becoming such a "cross-border digital sandbox" to pilot the use of cryptocurrencies in cross-border settlements. We have already brought together both fintech companies and regulators, we are in close cooperation with Rosfinmonitoring and the Central Bank, whose cooperation is essential to fully create all layers of payments in cryptocurrencies", the head of REC said.

She believes that it is important to build such a "sandbox" to identify all possible risks in terms of regulation and technology to execute quick and safe payments.

The 25th SPIEF took place in St. Petersburg from 15 to 18 June. Sputnik was an official media partner of the forum.