Russia maintains a firm ban on using cryptocurrencies for domestic payments

Russian lawmaker Anatoly Aksakov has reaffirmed that cryptocurrencies will not be permitted as a means of payment inside Russia.

Speaking to the state-run news agency TASS, Aksakov said all domestic payments must continue to be conducted exclusively in rubles. At the same time, cryptocurrencies such as Bitcoin and Ethereum may only be used as investment instruments.

As chair of the State Duma Committee on Financial Markets and one of the key architects of Russia’s crypto legislation, Aksakov stated that lawmakers support the central bank’s long-standing opposition to crypto payments between individuals and businesses.

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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