Bitcoin and Ethereum will never become a means of payment in Russia, says the chief architect of the country’s crypto regulation.
Anatoly Aksakov, chairman of the State Duma’s Financial Markets Committee, told the Russian News Agency TASS that lawmakers support the central bank’s opposition to crypto payments between individuals and companies.
“We must understand that cryptocurrencies will never become money in Russia,” Aksakov said. “Cryptocurrencies can only be used as an investment instrument. When payment is required, it must be made only in rubles.”
Aksakov’s comments come as the government prepares to regulate the sector despite central bank reluctance amid rising adoption rates in Russia.
Skepticism among central banks
The central bank has previously taken a strong stance against crypto.
Long-serving Governor Elvira Nabiullina has previously called for a total ban on crypto transactions, exchanges and Bitcoin mining.
In 2020, lawmakers pushed through a ban on the use of crypto as a means of payment on Russian territory. Since then, the Treasury Department and the central bank have been embroiled in a protracted tug-of-war over crypto regulation.
While the bank repeatedly called for a sweeping Chinese-style ban, the ministry preferred to regulate the stock exchanges and tax traders on their profits.
Neither party showed any willingness to budge on the issue, launching rival bills that proposed banning or legalizing crypto-related industries.
All these bills ultimately led to nothing and got stuck in Duma committees as the impasse dragged on for four years.
But recent events seem to indicate that the ministry will get its way after all, with the central bank looking increasingly isolated in its crypto opposition.
President Vladimir Putin has spoken positively about the growth of Russia’s crypto mining industry.
Last year, Aksakov said Russian companies have conducted billions of dollars in cross-border trade using crypto as a means of payment. Even many of the country’s top banks have said demand for crypto is growing among their customer base.
Further evidence of Moscow’s crypto pivot comes from a senior decision-maker, who also echoed the ministry’s sentiments this month.
Evgeny Masharov, member of the policy-making Civic Chamber’s Commission for Public Review of Bills and Other Regulatory Acts, said the cryptocurrency sector urgently needs regulation, according to the Russian publication OCN reported.
“Like [cryptocurrencies] were legalized, federal budget revenues would increase significantly,” Masharov said. “And most importantly, law enforcement agencies would be able to thwart attempts to launder funds stolen through voice phishing scams.”
Tim Alper is a news correspondent at DL News. Do you have a tip? Email at tdalper@dlnews.com.
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