Belarusian Central Bank Drafts Crypto Payment Rules – A Bold Leap Forward

• Belarus writes the crypto payment law in an attempt to promote digital finance.
• President Lukashenko calls for taking practical steps regarding the use of cryptocurrency.
• New regulations make Belarus fall in line with the trends of crypto innovations in the region.

Belarus is poised to join the crypto revolution. The National Bank of the Republic of Belarus (NBRB) has prepared new regulations that will allow the use of cryptocurrencies in payment processes in the country. 

President Alexander Lukashenko supported this notable step, indicating a significant change in the policy of utilizing digital assets.

The proposed law aims to make cryptocurrencies part of the financial transactions in day-to-day life. Belarus is continuing the work initiated by the 2017 decree, which legalized crypto mining and trading in Hi-Tech Park, a special economic zone for IT businesses.

The new regulations that are proposed are meant to widen the law to accommodate the use of cryptocurrencies in a wider scope, including payments.

Could Belarus Become a Crypto Hub?

NBRB, the company chairman, Roman Golovchenko, and the former prime minister called the crypto market a very important subject. He highlighted that cryptocurrency exchanges registered in the Hi-Tech Park are developing rapidly and maintaining a stable turnover volume.

 “Cryptocurrencies are here to stay,” Golovchenko said. He emphasized the necessity to integrate them into the mainstream financial policy of Belarus in a timely and in the right way.

The proposals made by the central bank reflect the idea to revise the current regulations and replace them with brand new solutions that will help integrate cryptocurrencies and digital financial assets into the financial model of the country. 

As President Lukashenko identified the lack of development of the local cryptocurrency market, he himself asked the central bank what specific steps it would take to utilize the capabilities of cryptocurrencies, particularly in the area of payment settlements.

Belarus seems to be acting as a follow-up on Russia, which recently presented the idea of an experimental legal framework to allow cross-border crypto payments to deal with Western sanctions. 

The two nations strive to use cryptocurrencies to ease the effects of geopolitical financial sanctions and initiate new trade routes.

Strategic Benefits and New Horizons

The relocation indicates a strategic direction for Belarus to become innovative and eliminate financial risks involving money laundering. It is an indication that it is ready to adopt the digital economy in the wake of global fintech. 

The Hi-Tech Park in Belarus, established by Decree No. 8, establishes a tax-favorable regime for crypto and IT businesses, which makes the country competitive as an investment target and business start-up site in the fintech sector.

President Lukashenko has directed the energy sector to create crypto mining using the excess electricity available in Belarus. This follows the strategy of the central bank by introducing an expanding crypto ecosystem with national resources.

Having drafted legislation, Belarus intends to have in-depth consultations in the coming conferences to bring to a close the regulations that will make the nation a leader in digital financial transformation in the region. 

By providing formal permission to use crypto to make payments, Belarus can jumpstart economic growth and increase financial inclusion.