Bypassing SWIFT: Tatarstan prepares crypto operator for external settlements

The state sees the crypto industry as an ally in external settlements

Tatarstan has moved to concrete steps in building an ecosystem based on digital financial assets (DFA), which the Ministry of Digital Development has announced several times before. An accredited operator for conducting cryptocurrency transactions, its own crypto exchange, over 5,000 mining farms, and a university for training in digital operations — each of these elements is, to some extent, ready to operate in the global digital market, said Ayrat Khayrullin, Minister of Digital Development of the Republic of Tatarstan, to journalists at the Kazan Cryptoforum 2025, dedicated to the crypto industry and blockchain technology. While the state was previously distrustful of these developments, in the current sanctions environment, decentralized digital instruments are becoming saviours of the Russian economy. The use of cryptocurrency will help bypass SWIFT restrictions on external settlements, he noted.

“Our task is to bring the dialogue between the crypto industry and the state closer in order to develop solutions that will enable faster growth,” he said at the opening of the forum’s plenary session. “We see that our solutions are in demand on international global markets, and behind this stands significant intellectual work. They create a decentralised infrastructure that can exist in a hybrid format. The state pays close attention to it, and here in Tatarstan, we strive to support the implementation of these projects.”

According to his estimates, there are about 5,000 mining farms operating in the republic, with a turnover of $100–150 million, equivalent to 3% of the Russian mining market. He predicts their number will continue to grow. What is this growth attributed to? “IT education is developing actively, with more graduates choosing to take computer science exams. Tatarstan must become the foundation of the new digital economy,” the minister concluded.

Digital Ruble could launch in Tatarstan in 2025

Rifkat Minnikhanov, the president of the Academy of Sciences of Tatarstan, announced that active digital transformations will begin in the republic this year. He reminded that two years ago, a law on the introduction of the digital ruble came into effect, and its testing is currently ongoing. As of last year, 50 legal entities and 2,000 individuals had joined the project, but the ruble itself is expected to become available to everyone by 2026–2027. Previously, Rifkat Minnikhanov acknowledged that blockchain development prospects seemed to him to be relevant only in the banking sector, but now it can be used to solve tasks across various industries of the economy.

The head of the Ministry of Digital Development later explained to journalists that Tatarstan will be one of the first regions to transition to the digital ruble in public administration. It will be used not only for public procurement but also for social payments and subsidies. “At the beginning of this year, the head of Tatarstan met with Central Bank Chair Elvira Nabiullina, where agreements were reached that as soon as the Central Bank issues the digital ruble, it will first be used in Tatarstan for settlements in public administration,” Khayrullin said. “Public procurement will be conducted based on the digital ruble, covering expenditures amounting to 150 billion rubles. Procurement in public construction amounts to 100 billion rubles or more. Additionally, social payments total 20–25 billion rubles, plus subsidies in agriculture — 10 billion rubles annually.”

The digital ruble is a form of the Russian national currency issued by the Bank of Russia in addition to existing forms of money. One cash ruble is equal to one digital ruble, the Central Bank previously reported. However, it is not yet ready for circulation. Its introduction was originally planned for July 1, 2025, but in February, Central Bank Chair Elvira Nabiullina announced a postponement to September, although the testing itself is proceeding successfully.

In any case, contractors do not need to prepare extensively, as the Central Bank’s infrastructure is centralised, Khayrullin warned.

Blockchain technologies offer broad opportunities in Tatarstan, added Ayrat Khayrullin. According to him, they can be used in notary services, arbitration certification of transactions, and in the Federal Service for State Registration, Cadastre and Cartography (Rosreestr). “The technology itself allows for building infrastructure without intermediaries, where relationships between parties are verified by a crypto-algorithm,” he pointed out as an advantage. However, prospects for their development need to be defined within the Russian legal framework.

Own operator will conduct cryptocurrency settlements

The sensational news about the potential emergence of a “crypto exchange” in Tatarstan was announced at the very end. Some details were shared with journalists by Yakov Tenilin, founder of the Cryptopolygonproject. According to him, a Tatarstan-based company has submitted an application and is undergoing a competitive selection by the Central Bank to obtain the status of a cryptocurrency operator, which will be used for external settlements.

“Tatarstan is participating in a competitive selection to identify the organisation that will carry out cross-border payments. Cryptocurrency is not a means of payment in the Russian Federation and cannot be used for the purchase of goods and services, but within the framework of an experimental legal regime, it may be used in international transactions for settlements through specialised organisations,” he said.

According to him, the organisation is currently undergoing accreditation with the Central Bank, which is a mandatory requirement. “It must have reliable beneficiaries. This is a completely private entity, created from scratch. The identity of the director is not disclosed. It is important to maintain its anonymity so that the organisation does not end up on sanctions lists,” Tenilin explained. The pilot experiment is being launched so that Russia can settle payments with foreign countries. Tatarstan is not the only region undergoing selection. The experimental legal regime has not yet begun operating, and the selection of candidates is ongoing.

It is worth recalling that a year ago, authorities began drafting a bill to establish a national crypto platform — it will create a registry of digital currency operators, monitor their compliance with necessary requirements, and license their activities, Vedomosti reported. The use of cryptocurrency in external settlements is permitted as part of an experimental regime, Central Bank Chair Elvira Nabiullina reiterated on April 17 in the State Duma.

All parties are interested in this tool: both exporters and importers. “Business adapts to any sanctions, but existing agency schemes for international settlements are unreliable, poorly controlled by the state, and payments themselves can sometimes take months to clear,” Tenilin listed the shortcomings of alternative settlement methods.

“Participant selection is currently underway, infrastructure is being formed, and security agencies are conducting their checks. Tatarstan will definitely be included,” Ayrat Khayrullin assured journalists.

He noted that the traditional banking system is unable to meet this challenge: “We now see that the financial system, which for years has been built on SWIFT technology, cannot serve Russian residents. An alternative exists in the form of decentralized finance.”

In this regard, the state supports blockchain, and sanctions have become a catalyst for the crypto industry in foreign economic activity. Speaking about plans to create its own crypto exchange, the minister said it is underway, but its beneficiaries are not disclosed.