Russia Will Eventually Allow Crypto Payments, Minister Confirms

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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 local media 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  , 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.

The minister now also confirmed that the government and the central bank are in working in tandem to clear the there 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.

He further 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 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. Russian invest around $5 billion in cryptocurrencies a year, but Central Bank Governor, Elvira Nabiullina earlier said that the regulator could not welcome such investments.

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

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 local media 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  , 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.

The minister now also confirmed that the government and the central bank are in working in tandem to clear the there 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.

He further 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 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. Russian invest around $5 billion in cryptocurrencies a year, but Central Bank Governor, Elvira Nabiullina earlier said that the regulator could not welcome such investments.

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

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