Russian Lawmakers Reject Bitcoin and Ethereum Payments, Back Central Bank Stance
Moscow slams the door on crypto payments—again.
The Kremlin's Latest Move
Russian legislators have officially shut down proposals to legalize Bitcoin and Ethereum for everyday transactions. The decision throws cold water on years of industry lobbying and firmly aligns the State Duma with the Central Bank of Russia's long-held, skeptical position.
Why the Hard Line?
The central argument hasn't changed: sovereignty. Lawmakers cited fears over financial stability, capital flight, and losing control over the monetary system. It's a classic case of a state protecting its monopoly on money creation—no surprises there for anyone watching the regulatory trenches.
The Ripple Effect
This isn't just a 'no' to payments. It's a signal. The move reinforces a regulatory moat around traditional finance, pushing crypto further toward asset-class status rather than a usable currency within Russia's borders. Miners and holders might be fine, but any business hoping to transact in crypto just hit a brick wall.
The Bottom Line
For now, the ruble reigns supreme. The decision underscores a global divide: while some nations experiment with digital asset integration, others are doubling down on financial fortresses. It's a reminder that in the high-stakes game of monetary policy, central banks still hold all the cards—and they're not keen on dealing a new hand. Another win for legacy finance, which somehow always manages to innovate at a glacial pace while blocking faster competitors.
Central Bank Skepticism Remains Firm
The Bank of Russia, acting as the country’s central bank, has long opposed widespread crypto usage. Its leadership has repeatedly warned about financial instability, consumer risks, and illicit activity tied to digital assets. This skepticism shaped earlier legislation, including a 2020 ban on cryptocurrency payments on Russian territory. That law cemented the principle that only the ruble can settle obligations inside the country.
Since then, the debate on Russian cryptopolitics has been characterized by discord. While the Ministry of Finance has supported the regulation and taxation of cryptocurrencies, the Central Bank has sought more drastic policies, even banning the activities of trade and mining operators. This discrepancy between the two viewpoints has materialized in rival bills on cryptopolitics that have not moved forward for years.
Regulation Advances Amid Growing Use
Despite the challenges faced when using crypto for payment, there is a change in perception when it comes to the crypto industry as a whole. Public officials are now open about regulating, not banning, crypto activity. President Vladimir Putin has recognized the increase in crypto mining that is taking place within the country.
Aksakov also recognizes that Russian corporations have been using cryptocurrencies for international trade when there are frictions along the payment chains. The momentum towards regulation received another boost from advisors. Civic Chamber members have stated that it could have a positive effect on government revenues.
The right rules, according to Civic Chamber members, will enable them to check transactions better. They can also fight financial crimes such as fraud-related money laundering. This corresponds to the stance adopted by the Ministry of Finance.
