Erdogan Suggests Turkish-Russian Payment System, Local Media Reports – Finance Bitcoin News

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Turkish President Recep Tayyip Erdogan is reportedly pushing for Turkey and Russia to set up a new payment system between them. The initiative comes amid US pressure against the use of the Russian Mir cards in Turkey. Some Turkish banks have worked with them to facilitate payments from Russian tourists visiting the country.

President Erdogan Tasks Turkish Government With Developing Mir Alternative, Report

President of Turkey Recep Tayyip Erdoğan instructed ministers to develop a payment system with Russia to serve as an alternative to the Russian banking system Mir. According to the TV channel A Haber, Turkish and Russian officials have already discussed this matter.

The move follows a statement by Washington that the US will try to persuade Turkey to limit support for Mir. Its cards are one of the few remaining options for Russians holidaying in Turkey, as Western sanctions have cut them off from major global credit cards as well as destinations. Many of them visited Turkey this year.

Quoted by the Russian business daily Kommersant, A Haber revealed that the relevant Turkish and Russian government departments are now negotiating while President Erdogan himself will also participate in discussions on the issue.

In mid-September, the administration in Washington indicated that it may impose sanctions on nations conducting transactions with Mir. Two of the five Turkish lenders that worked with the Russian payment system, Isbank and Denizbank, suspended operations with it. The state-owned Halkbank, Vakifbank, and Ziraat continue to use it.

Later, the US Treasury expressed readiness to convince the Turkish government of the need to reduce the use of Mir. Last week, US authorities expanded the sanctions imposed over Russia’s invasion of Ukraine to include the chief executive of the National Card Payment System of the Central Bank of Russia (NSPK), the operator of Mir.

The NSPK processes domestic transactions in Russia. Moscow was established Mir after the annexation of Crimea in 2014, when several Russian banks were denied services by Visa and Mastercard. Russia also developed the System for Transmission of Financial Messages (SPFS), alternative to FASTfrom which some Russian banking institutions were disconnected.

During the current crisis, Russia has also turned its attention to cryptocurrencies. Earlier this month the Finance Ministry and the Bank of Russia agreed that under the current conditions, Russia should legalize crypto payments for cross-border transactions to ease the sanctions pressure on its economy and foreign trade.

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Bank, bank cards, banks, cards, conflict, credit cards, Crypto, crypto payments, Cryptocurrencies, Cryptocurrency, Erdogan, Mir, payment system, President, Russia, Russian, Russians, Sanctions, Turkey, Turkey, USA, Ukraine, War

Do you think Turkey and Russia will develop a new payment system to replace Mir? Share your expectations in the comments section below.

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Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes the Hitchens quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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