Russia Rules Out Crypto Payments, Reinforces Ruble-Only Policy

Russia’s lawmakers reaffirm ruble-only payments, reject crypto for domestic use, and back central bank opposition to Bitcoin transactions.

Russia has restated its firm opposition to cryptocurrency payments, reinforcing the ruble’s exclusive role in domestic transactions. Anatoly Aksakov, senior lawmaker emphasized that digital assets will never be considered money on the national scale. Instead, cryptocurrencies will continue to be investment tools only. As a result, officials continue going along with the policies against the Alberta central bank objections.

Russian Lawmakers Reaffirm Ruble Monopoly on Payments

Speaking to state news agency TASS, Aksakov said the central bank’s stance was backed by parliament. He emphasized that the settlements of all payments inside Russia must be by rubles. In addition, Bitcoin and Ethereum were ridiculed as being unsuitable for monetary use. Lawmakers, therefore, are in support of extreme restrictions on crypto transactions.

Furthermore, Aksakov highlighted that cryptocurrencies do not have a legal payment status. According to him, they may only be investment purposes. Where the mandatory use of rubles for settlement has been adopted, revenues from mandatory ruble use must be allocated. This position, therefore, eliminates uncertainty over the acceptance of crypto domestically. It is also clarifying legislative priorities going forward.

Previously, Bank of Russia Governor Elvira Nabiullina voiced similar opinions at a session of the State Duma. She restated that cryptocurrency payments are still banned nationwide. However, she mentioned an experimental legal regime for the use of crypto in foreign trade. This exception, therefore, is strictly in the outside domain of domestic commerce.

Related Reading: Crypto News: Russia to Legalize Crypto for Foreign Trade Settlements | Live Bitcoin News

Meanwhile, Aksakov’s comments come as much larger regulatory preparations are under way. Despite increasing crypto use, the central bank is wary. Officials are still looking to carve out frameworks for oversight while they fight back against payment liberalization. As a result, regulatory clarity moves forward without changing payment rules.

Historically, Russia prohibits crypto payments with the adoption of legislation in 2020. Since then there have been debates between regulators. The Ministry of Finance was for oversight and taxation. On the contrary, the central bank argued several times for sweeping restrictions. This disagreement influenced Russia’s guarded stance regarding digital assets.

Russia Balances Crypto Restrictions with Trade Experiments

Notably, there was an increased policy debate as crypto adoption grew. Nabiullina in the past called for bans on transactions, exchanges, and mining. However, other officials did see economic opportunities. As a result of unresolved policy divisions, competitive legislative proposals emerged. Still, there was no change in payment prohibitions.

President Vladimir Putin has from time to time emphasized the development of Russia’s mining sector. His utterances hinted at an attitude of openness towards industrial development. Nevertheless, rules on payment remain strict. Mining growth, therefore, was not transaction acceptance. This differentiation remains the defining Russia’s crypto strategy.

Interestingly, Aksakov used to admit significant crypto usage in cross-border trade. Russian firms were reportedly given billions of dollars in settlements using digital assets. Such activity was done under experimental frameworks. Thus, authorities were allowing crypto in foreign territories but limiting it from home.

In addition, major Russian banks reported increasing interest by clients in digital assets. The demand increased based on regulatory uncertainty. However, the banks were still restricted by payment bans. As a result, crypto exposure remained investment-oriented instead of being transactional.

Overall, Russia position is a controlled one. Authorities distinguish between investment, mining, and foreign trade on the one hand and internal payments on the other. This separation is in order to protect the monetary sovereignty. Therefore, the ruble has its exclusive domestic role.

With a look to the future, further regulation seems inevitable. However, crypto payments appear unambiguously out of the question. As lawmakers support the central bank, the consistency of policy is strengthened. Ultimately, Russia remains between the two extremes of innovation and financial control.

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