Russia Insists Ruble Must Be Sole Payment Currency, Crypto as Investment Only

TLDR

Table of Contents

Russia affirms ruble as the only legal payment method, excluding crypto for payments.
Cryptocurrencies are limited to investments, with no plan for their use in domestic transactions.
Lawmakers move to recognize digital assets in family law, especially in divorce cases.
Russia maintains its stance against crypto for payments, but acknowledges its growing investment role.

Russia has reaffirmed its stance on cryptocurrency, declaring that the ruble will remain the sole legal currency for domestic payments. While cryptocurrencies like Bitcoin and Ethereum are banned from being used in transactions, lawmakers are recognizing their growing role as investment assets. Proposals are even emerging to legally acknowledge digital assets in areas like family law, highlighting the country’s complex relationship with crypto.

Russia Upholds Ruble as Sole Payment Currency, Limits Crypto to Investments

Russia continues its strict stance on cryptocurrency use within the country, reaffirming that the ruble remains the only legal tender for domestic payments. Anatoly Aksakov, the chairman of the State Duma Committee on Financial Markets, emphasized that cryptocurrency, including popular digital assets like Bitcoin and Ethereum, will not become a recognized currency in Russia.

Rather, these digital assets can only be used as investment tools. This declaration aligns with the Russian central bank’s ongoing opposition to the use of cryptocurrencies for everyday transactions.

However, despite this firm position on cryptocurrencies not being used for payments, there is a growing recognition of their role as investment instruments. While the government has reiterated that digital currencies will not replace the ruble, lawmakers are taking steps to legally acknowledge cryptocurrencies in other areas, particularly in family law and property rights.

Limited Use of Cryptocurrency as Investment Tool

Although cryptocurrency cannot be used for domestic payments, Russia has seen increasing use of digital currencies for investment purposes. The Russian government has allowed some experimental frameworks for foreign trade involving cryptocurrencies. This policy reflects the growing global trend of crypto assets being treated as financial instruments for investment rather than as currencies for transactions.

Additionally, Russian lawmakers have started to explore how cryptocurrencies can be legally recognized in areas such as asset ownership, with particular attention to how these assets are handled during divorce proceedings. A recent proposal by Igor Antropenko, a lawmaker from the United Russia party, seeks to classify cryptocurrencies as marital property.

This would treat digital assets acquired during marriage as jointly owned, just like other forms of property. Such a move indicates the increasing importance of digital currencies in personal finance and the need for the legal system to adapt accordingly.

Russian Lawmakers’ Support for Central Bank Stance

The Russian central bank has long opposed the use of cryptocurrencies for domestic payments, and lawmakers have expressed support for this view. Anatoly Aksakov and other government officials have stressed that the ruble is the sole legal means of payment within Russia. This position remains firm, despite some concerns about the growing use of cryptocurrency for cross-border transactions and investments.

By maintaining this policy, Russia is looking to avoid the challenges that other countries face in regulating cryptocurrencies. The government is aware of the potential for cryptocurrencies to be used to bypass sanctions, and while it publicly denounces their use for payments, there are indications that Russia may explore their use for such purposes behind the scenes.

Digital Assets in Russian Legal Framework

While cryptocurrency is prohibited for payments, Russia is beginning to recognize digital assets as legitimate forms of property. In line with proposals like the one from Antropenko, there is a move toward acknowledging the growing role of cryptocurrencies in personal and commercial transactions. This legal recognition will help clarify how digital assets are treated in legal contexts such as inheritance and divorce.

This shift is part of a broader trend where the government is starting to integrate digital assets into Russia’s legal system, albeit with strict regulations. The discussions surrounding cryptocurrencies are evolving, focusing more on how they can fit into the existing legal framework while addressing the concerns of lawmakers and regulators.

Russia’s approach to cryptocurrency remains cautious. While crypto is not accepted as a method of payment, the legal recognition of digital assets as property indicates that lawmakers are starting to take the role of cryptocurrencies more seriously in areas beyond daily transactions. The government’s reluctance to allow crypto payments highlights the balancing act between regulating new technologies and maintaining control over the economy.