How Digital Assets Simplify Payments Between Russia and China

Digital assets are increasingly being used in cross-border transactions between Russia and China. The main reason for this is that traditional banking has long been slow due to international sanctions. Qifa, a digital tool, has emerged as a way to solve these payment problems by using cryptocurrencies to speed up transactions.

Qifa Overview

When Qifa started in 2013, its main goal was to bring Chinese products to Russia. As the economies of the two countries changed and trade between them increased, Qifa shifted its focus to facilitating trade between the two countries in 2023.

Fines and Payment Delays

Banking transactions are taking a long time due to sanctions. Some payments are taking months. Chinese banks have made it difficult for Russian companies that are not aware of these new rules to make payments as they will have to comply with more regulations.

Use of digital assets

To address these issues, Qifa has turned to digital asset transactions, specifically through the use of the Tether (USDT) stablecoin. By bypassing standard banking systems, this payment method allows transactions to be completed quickly, often in just one day.

Legislative developments

Russia is considering passing legislation that allows the use of cryptocurrencies in international trade. This would make transactions involving digital assets even more legal and speed them up. Qifa is closely following regulations in both Russia and China to ensure compliance.

Compliance issues

More compliance checks have slowed payments, making processing times longer. Qifa says one thing is that many Russian companies are starting to adopt these rules, but there are still issues with paperwork and products that can be used for two different things. Qifa wants to be listed on the Moscow Stock Exchange and is looking for business opportunities in Kazakhstan and other former Soviet countries. This represents a major regional goal at a time when international trade is changing.

About Bilateral Trade

When two different countries trade with each other it is called bilateral trade. This can strengthen economic ties, often leading to trade deals that reduce taxes. In particular, trade between the United States and China is very important and accounts for a large portion of all global trade. Foreign investment can increase with the help of bilateral trade agreements. Surprisingly, about 60% of all global trade is done through regional agreements rather than bilateral agreements. Many emerging countries also depend on trade between two countries to grow their economies.

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