Russia will legalise crypto as a form of payment, according to a minister

In Russia, cryptocurrencies were legalised on January 1 of this year, but they can’t be used to buy goods or services.

Cryptocurrency laws have been introduced in Russia in the last few months that stop short of a total ban, but nonetheless, place strict restrictions on the use of virtual currencies as cash. For the first time in 16 months, Moscow has decided to include cryptocurrencies in its financial system.

He said on Thursday that Russia would “sooner or later” legalise cryptocurrencies as a means of payment, which indicates that the government and central bank are moving closer to a solution.

A central bank digital currency has been introduced, but Moscow has opposed the use of privately owned cryptocurrencies until recently. According to Manturov, the government and central bank may be making headway (Bitcoin News).

When asked about cryptocurrency investments by the press, Governor Elvira Nabiullina of Russia’s central bank stated the bank couldn’t accept them and advised banning trading and mining in the digital currency.

Manturov, on the other hand, thinks that the government and central bank are getting closer to a solution to their disagreement.

As early as February 24, the finance ministry suggested legislation that was inconsistent with the central bank’s objective for a total prohibition on currency speculation.

As Russia Considers Legalizing Cryptocurrency, The question of whether or not cryptocurrencies would ever be accepted as a form of payment was put to Manturov during a forum he attended.

How will the government and central bank control this if it does happen? That’s the issue,” Manturov said. “However, the broad assumption is that… sooner or later, this will be implemented in some form,” a Russian official said.

It has been approved by the central bank since 2020 for Russian banks to set up cryptocurrency exchanges, and new digital currencies may be issued, but only if the central bank is involved.

While some had predicted a near-total freeze on cryptocurrency activity in Russia, this shows a more realistic attitude to cryptocurrencies and their acceptability in the country.

The Kremlin has only recently come around to supporting the use of private cryptocurrencies after warning for years that they may be used to launder money or finance terrorists. Moscow aims to develop its own digital rouble.

There was a time last year when some Russian central bank officials said that they didn’t see any place for cryptocurrencies in Russia’s financial industry, noting the rising volume of crypto transactions.

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