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- Payments must only be conducted in rubles, says MP.
- Lawmaker adds: “crypto will never become money in Russia.”
- Central bank a lone voice of opposition to Moscow’s crypto pivot.
Bitcoin and Ethereum will never become a means of payment in Russia, says the chief architect of the country’s crypto regulation.
Anatoly Aksakov, the chair of the State Duma’s Committee on Financial Markets, told the Russian news agency TASS that lawmakers support the central bank’s opposition to crypto payments between individuals and companies.
“We must understand that cryptocurrencies will never become money in Russia,” Aksakov said. “Cryptocurrencies can only be used as investment instruments. Where payment is required, it must only be conducted in rubles.”
Aksakov’s comments come as the government prepares to regulate the industry despite the central bank’s reluctance, amid rising adoption rates in Russia.
Central bank skepticism
The central bank has previously taken a firm stance against crypto.
Its long-serving governor, Elvira Nabiullina, has previously called for a total ban on crypto transactions, exchanges, and Bitcoin mining.
In 2020, lawmakers pushed through a ban on the use of crypto as a payment method on Russian territory. Since then, the Ministry of Finance and the central bank have been engaged in a protracted tug-of-war over crypto regulation.
While the bank repeatedly called for a sweeping, China-style ban, the ministry instead favoured regulating exchanges and taxing traders on their profits.
Neither side showed any willingness to budge on the matter, launching rival bills that proposed either banning or legalising crypto-related industries.
All of these bills ended up going nowhere, getting stuck in State Duma committees as the impasse dragged on for four years.
But recent events appear to suggest the ministry will get its way after all, with the central bank looking ever more isolated in its crypto opposition.
President Vladimir Putin has spoken positively about the growth of the Russian crypto mining industry.
Last year, Aksakov said Russian firms have conducted billions of dollars’ worth of cross-border trade using crypto as a payment tool. Even many of the country’s top banks have said demand for crypto is growing among their customer bases.
Further evidence of Moscow’s crypto pivot has come from a senior decision-maker, who also echoed the ministry’s sentiments this month.
Evgeny Masharov, a member of the policy-forming Civic Chamber’s Commission for Public Review of Bills and Other Regulatory Acts, said the cryptocurrency sector urgently needs regulation, the Russian publication OCN reported.
“If [cryptocurrencies] were legalised, federal budget revenues would see a significant increase,” Masharov said. “And most importantly, law enforcement agencies could thwart attempts to launder funds stolen through voice phishing fraud.”
Tim Alper is a news correspondent at DL News. Got a tip? Email at tdalper@dlnews.com.
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