Russia Doubles Down: Cryptocurrency Payments Remain Strictly Banned

Moscow slams the door shut—again. The Kremlin reaffirms its hardline stance, keeping digital assets firmly outside the domestic payment ecosystem.

The Regulatory Wall Stands Firm

Forget using Bitcoin for your morning coffee or settling a business invoice with Ethereum. Russian authorities just reiterated the ban, treating crypto as a potential threat to monetary sovereignty rather than a tool for financial innovation. The message is clear: the ruble reigns supreme within its borders.

Why the Persistent Cold Shoulder?

It's about control. Unregulated crypto flows could undermine capital controls, complicate sanctions enforcement, and challenge the central bank's grip on the money supply. For a state deeply entwined in the global geopolitical struggle, anonymous, borderless payments represent a risk they're unwilling to take—at least for now.

So, while traders might still speculate on exchanges, the dream of a crypto-powered parallel economy in Russia hits another regulatory brick wall. Another reminder that in the high-stakes game of national finance, disruptive tech often meets immovable policy—and the house usually wins.

Russian lawmakers reinforce ruble-only payment rule

Aksakov informed TASS that the question of payments is clear in Russian law. He noted that in Russia, cryptocurrencies will never be considered money, and any transaction involving goods or services must be paid in rubles. He further stated that digital assets could be invested in or traded, but not utilized to transact in the normal economic life.

This stance is consistent with current laws implemented in 2020, which prohibit the use of cryptocurrencies as a payment system on Russian soil. That legislation formally removed digital property from the list of forms of legal tender, a point that Aksakov again emphasized in his recent remarks. According to him, lawmakers still support the central bank’s position that cryptocurrencies should not be used as an alternative payment method in the country.

Central bank skepticism and regulatory standoff

The Bank of Russia has remained strongly resistant to the use of cryptocurrencies as a means of payment and a financial tool. Elvora Nabiullina, the Governor, has requested a wide prohibition on crypto transactions, exchanges, and Bitcoin mining due to financial stability and consumer protection issues.

The central bank and the Ministry of Finance have been engaged in a regulatory tussle over the past few years regarding how to approach the crypto sector. The central bank preferred measures similar to those in China, whereas the Ministry of Finance advocated for regulating exchanges and taxing profits generated through crypto trading.

Legislative projects were proposed, but all failed due to their inability to pass through the State Duma committees, as the committees continued to disagree.

Crypto use grows despite payment ban

Although cryptocurrencies are not permitted for domestic payments, authorities have acknowledged their growing contribution in other sectors. Earlier, Aksakov mentioned that Russian businesses have already made billions of dollars in cross-border commerce utilizing crypto as a payment method.

These exchanges are not subject to domestic settlement terms and belong to an experimental legal system that permits the use of cryptocurrency in international trade.

Nabiullina has additionally indicated that although crypto cannot be utilized for internal payments, Russia grants some access to using digital assets for international payments under certain conditions. The style is indicative of a difference between the domestic monetary and external trade mechanisms.

Other officials have been in support of regulation. This month, Evgeny Masharov, a member of the Civic Chamber Commission on Public Review of Bills and Regulatory Acts, stated that the cryptocurrency industry needs official regulation. According to the Russian publication OCN, he claimed that legalization WOULD boost federal budget revenues and enable law enforcement agencies to address financial offenses.

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