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Russia Agrees to Use Crypto for Some Transactions

According to Cointelegraph, the Bank of Russia, which is the nation’s central bank, has reportedly stated that given the current geopolitical atmosphere, it is impossible to avoid making cross-border transfers of cryptocurrencies.

TASS, a local news site, reports that the Russian central bank has changed its mind on how it would regulate cryptocurrencies and legitimize them for use in international payments. This development was reportedly made public by the bank.

The Deputy Finance Minister claimed that they were going to legalize bitcoin transfers between countries very soon. Alexei Moiseev highlighted the necessity for local cryptocurrency services in Russia by pointing out that many Russians use overseas sites to build cryptocurrency wallets. This highlighted the need for local cryptocurrency services in Russia. According to the source, this process has to take place in Russia, and it should include organizations that fall under the supervision of the central bank and are obligated to conform to Know Your Customer and anti-money laundering legislation, as stated by Cointelegraph.

Crypto Background in Russia

Russian authorities have always opposed the idea of embracing cryptocurrencies such as bitcoin as a form of payment. In 2020, Russia implemented a key crypto rule known as “On Digital Financial Assets,” which prohibited the use of cryptocurrencies such as Bitcoin (BTC) as payment methods. This policy took effect in early 2021. The Bank of Russia has been skeptical of the concept of people making payments using cryptocurrencies like bitcoin and ether since the Russian ruble is the sole form of legal cash in the country.

Late in the year 2021, the idea of using cryptocurrency as a method of payment was introduced in Russia. Then, Russian President Vladimir Putin commented that it was “still early” to use bitcoin for the exchange of natural resources. It would seem that things have changed for the better as a direct consequence of the economic sanctions imposed by the West in response to Russia’s invasion of Ukraine. Later on, Elvira Nabiullina, the governor of the Bank of Russia, said that cryptocurrency may be used for international payments; however, this would only be possible if cryptocurrency did not penetrate Russia’s domestic financial system. In May, Russia’s Minister of Industry and Trade said that the country will “sooner or later” legalize the use of cryptocurrencies to make financial transactions.


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