Russia’s Crypto Revolution: From Outright Ban to Strategic Banking Embrace

Moscow pivots hard on digital assets—transforming skepticism into state-backed banking infrastructure.

Regulatory Reversal

Russia's financial authorities execute a stunning U-turn. Where once stood blanket prohibitions, now emerges a framework for national crypto banking—complete with licensing protocols and compliance rails. The Central Bank softens its stance, acknowledging digital assets' role in cross-border settlements.

Geopolitical Gambit

Sanctions pressure fuels innovation. The Kremlin eyes crypto to bypass dollar-dominated systems—building sovereign alternatives to SWIFT. State-owned banks now test digital asset custody while drafting legislation for mineral-backed stablecoins.

Institutional Onboarding

Sberbank leads the charge with corporate crypto services. VTB follows suit—laundering checks for oligarchs turned crypto OGs. Even Rosfinmonitoring gets in on the action, developing blockchain surveillance tools because nothing says 'decentralization' like state-monitored ledgers.

Miners rejoice as energy subsidies return—Siberian data centers humming with renewed purpose. The ruble's digital incarnation gains traction, though adoption still trails vodka-based barter systems in remote villages.

Western analysts scoff at the 'Potemkin innovation,' but Moscow's move signals deeper shifts. When empires play catch-up, they don't bother with testnets—they rebuild the financial stack from the ground up. The bear isn't just hibernating; it's learning to code.