Russia Will Eventually Allow Crypto Payments, Minister Confirms

The cloud around Russia’s crypto stance is slowly clearing. Denis Manturov, the country’s Industry and Trade Minister, confirmed on Wednesday that Russia will 'sooner or later' legalize cryptocurrencies as a means of payment, according to the local media company, TASS.

The stance of the Russian government and central bank were contracting when it comes to cryptocurrencies. While the Central Bank of Russia wants to blanket ban cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, the government wants a much more inclusive approach. The finance ministry of the Russian government even submitted a legislative proposal around cryptocurrencies days before the commencement of the Ukraine invasion.

Additionally, the minister now confirmed that the government and the central bank are working in tandem to clear their differences with cryptocurrencies.

“The question is when this will happen, how it will happen and how it will be regulated. Now, both the Central Bank and the government are actively engaged in this. But, everyone is inclined to understand that this is a trend of the time, and sooner or later in one format or another, it will be carried out,” said Manturov.

Moreover, he stressed that the process “must be legal, correct, in accordance with the rules that will be formulated.” The rules should be formulated first by the central bank and then by the government.

Changing Views on Crypto

Earlier, Russia had already defined cryptocurrencies as properties, but strictly prohibited their use for payments. The central bank even pointed out risks to financial stability from the use of cryptocurrencies. Russians invest around $5 billion in cryptocurrencies a year, but the Governor of the Central Bank, Elvira Nabiullina earlier said that the regulator could not welcome such investments.

However, the stance has changed with time, mostly by the impact of sanctions on Russia imposed by western governments. Furthermore, the county is planning to issue a digital rouble, but that plan seems to have been watered by the ongoing war.