Chinese Banks Reject Russian Payments, Boosting Use of Crypto

Chinese regional banks, once vital for processing Russian payments, are now rejecting these transactions due to concerns about secondary sanctions.

This has led to the rise of alternative methods such as cryptocurrency and barter to maintain trade between Russia and China.

The smooth flow of Russian-Chinese trade is now disrupted as Chinese regional banks halt yuan-based transactions from Russia. This change, reported by Izvestiya, follows a pattern of banks pulling back due to fears of being hit by secondary sanctions. Ekaterina Kizevich from Atvira confirmed her bank notified her of a payment suspension in July.

Russian firms are exploring options like using Russian bank branches in China, though this can increase costs by up to 5%. Barter trading is also being considered, though it’s not feasible for all goods.

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Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.