Cryptocurrencies to become legal means of payment in Russia

Ponvang B. Ponvang B.
19 May 2022
2 min read
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Cryptocurrencies to become legal means of payment in Russia

As interest in cryptocurrencies continues to increase, countries are starting to relax their restrictions on the use of digital assets. One such country is Russia which is considering making digital currencies legal for payments in the country.

Industry and Trade Minister, Denis Manturov stated on Wednesday that the country will eventually legalize cryptocurrencies as a form of payment. This is coming after a long battle in the country concerning the legality of cryptocurrencies. Indeed, Russia considered the outright ban of cryptocurrencies sometime back before a new law emerged that permitted ownership of crypto.

When asked if he sees cryptocurrencies becoming a legal form of payment, Manturov said:

"Everyone generally recognizes that... sooner or later, this will be implemented in some form or another. The concern is, when this occurs, how it will be controlled, given that the government and the central bank are actively working on it."

While the central bank of Russia insisted on a blanket ban on crypto in the past, the legalization of crypto payments will imply that the issue has been resolved. The central bank initially argued that the country faces a financial instability threat considering the growing number and volume of crypto transactions in the country.

Interestingly, Russia is working on a regulatory framework for Bitcoin and other cryptocurrencies as proposed by the ministry of finance, to be released possibly this year. 

Impressive as that is, other countries like El Salvador and The Central African Republic have gone a step higher and made Bitcoin a legal tender. Although these actions have not been received well by the International Monetary Fund or World Bank, the countries' leaders seem determined to maintain the status quo.

This week, representatives from over 40 countries also convened in El Salvador to discuss Bitcoin and how its adoption as a legal tender has impacted El Salvador. The global crypto community expects that this may lead to more countries adopting the top digital asset as legal tender. 

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Ponvang B.
Ponvang B.
About the Author

Crypto enthusiast, writer in the crypto space since 2018. Love to travel

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