According to Russian news agencies, Anatoly Aksakov, Chairman of the State Duma Committee on Financial Markets, stated that cryptocurrencies “will never become money” in Russia and should only be considered investment tools. He emphasized that payments must be made in Russian rubles.
This position aligns with existing law. A 2020 federal law on digital financial assets defines digital currency as distinct from Russia’s official monetary unit and prohibits its use for domestic payments. The law classifies tokens and cryptocurrencies as property or investment assets, not legal tender.
Officials in Moscow have consistently supported the central bank’s concerns that allowing crypto for everyday payments could undermine monetary control and financial stability. Regulators argue that the ruble’s role must be protected and that the volatility of assets like Bitcoin and Ethereum makes them unfit for regular transactions.
While crypto cannot be used to purchase goods and services within Russia, it can still exist within regulated frameworks. Lawmakers and regulators are treating cryptocurrencies as tradable assets, not cash. Some limited exceptions for corporate or cross-border operations are under discussion, but these do not alter the fundamental ban on domestic payments.
The practical implications are straightforward: Russian residents and businesses cannot accept digital currencies instead of rubles for sales or services. However, individuals can still own, trade, or invest in crypto under a framework that separates ownership from payment rights. The law also requires public officials to declare their digital asset holdings, tying transparency rules to the new system.
Reports indicate a firm political message: payments will remain in rubles. Lawmakers are discussing refinements to rules for trading, custody, and reporting, but they show no signs of allowing cryptocurrencies to replace the ruble for daily use. This stance places Russia on a different path from some countries that permit crypto payments or grant digital coins legal tender status.
Frequently Asked Questions
FAQs Russias Stance on Cryptocurrency as Legal Tender
1 What does it mean that Russia wont accept cryptocurrencies as legal tender
It means the Russian government will not recognize cryptocurrencies like Bitcoin or Ethereum as official governmentbacked money that can be used to pay for goods services or taxes The ruble remains the only official legal tender
2 Why is Russia making this decision
Russian officials cite concerns over financial stability the potential for illegal activities and the need to maintain control over monetary policy They view cryptocurrencies as too volatile and risky for everyday transactions
3 Does this mean cryptocurrencies are completely banned in Russia
No While they wont be legal tender the government is still developing regulations for their use in other ways such as for investments or crossborder transactions under strict oversight
4 What is the difference between legal tender and just using cryptocurrency
Legal tender means a currency must be accepted for debt payments and official transactions Using cryptocurrency can still happen privately but businesses arent legally required to accept it as payment
5 How will this affect people in Russia who own cryptocurrencies
Owners can likely still hold and trade cryptocurrencies on regulated exchanges but they cannot use them to pay for everyday items like groceries or bills in place of rubles They may face new reporting rules for large transactions
6 Could this decision change in the future
Possibly The government is still finalizing broader cryptocurrency regulations If global adoption increases or the economic situation changes Russia might adjust its stance but for now legal tender status is off the table
7 What are the risks Russia is trying to avoid by not allowing crypto as legal tender
Main risks include losing control over the money supply enabling tax evasion exposing citizens to extreme price swings and potentially undermining the rubles stability
8 Are other countries doing the same thing
Yes many countries including the US China and India also do not recognize cryptocurrencies as legal tender A few like El Salvador have adopted them but this is still rare
9 Can businesses in Russia still accept crypto if they want to
Technically they might but it would be treated as a barter transaction