Elvira Nabiullina, Governor of the Central Bank of Russia, reaffirmed the institution’s position against the use of cryptocurrencies for domestic payments.
Speaking at a recent press conference, Nabiullina stated, “We continue to believe that cryptocurrencies should not be used as a means of domestic payment,” according to Reuters reporting.
This stance aligns with Russia’s current legislation, which prohibits the use of digital assets for transactions within the country. However, Nabiullina emphasized the central bank’s support for using cryptocurrencies in international trade as a way to mitigate the impact of Western sanctions.
“We do agree, support, and promote projects related to the use of cryptocurrency for external payments, but for domestic payments—no,” she clarified.
Russia’s recent crypto developments
In line with this approach, Russia has been developing mechanisms to facilitate cross-border cryptocurrency transactions. The central bank plans to conduct its first experimental international payment using cryptocurrency by the end of this year.
While the central bank remains firm on prohibiting domestic cryptocurrency payments, its endorsement of digital assets for international trade and military purposes reflects a more nuanced approach to integrating cryptocurrencies into Russia’s financial system.
In 2023 Nabiullina approved the use of cryptocurrency in external settlements as an experiment. In March 2024, Russian President Vladimir Putin signed a law allowing the use of digital financial assets.
Read the full article here