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Russian Minister hints at cryptocurrency adoption “sooner or later”

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TL;DR Breakdown
  • According to the Ministry of Industry and Trade of the Russian Federation, Denis Manturov, Russia will ultimately legalize cryptocurrency payments.
  • The Russian official believes that bitcoin and other cryptocurrencies will soon be accepted as a payment method in Russia.
  • Over the last few months, Russian regulatory bodies have danced around terms like legalization and prohibition.

The popularity of digital assets in the global market has grown significantly, owing to the rapid rise of these assets. While some nations remain undecided regarding the legality and adoption of cryptocurrency, others are already laying the groundwork for it. In January, Bitcoin ambassador Nayib Bukele, the president of El Salvador, offered estimations about Bitcoin in 2022. In addition to this, he claimed that two more nations would fall into line and embrace it by the end of the year.

Bitcoin payments in Russia

According to a report from Russian state news agency TASS, Denis Manturov, the Minister of Industry and Trade of the Russian Federation, recently said that bitcoin and other cryptocurrencies would soon be legalized in Russia. Manturov believes that the legalization of bitcoin will happen sooner or later, as the global market is currently undergoing a cryptocurrency boom.

He also stated that the Russian government is currently working on developing legislation that would allow cryptocurrencies to be used as a means of payment in the country.

Manturov’s comments come when the Russian government is still undecided on how to deal with cryptocurrencies. Russia has just passed a new cryptocurrency law that, while failing to duplicate the country’s previous ban on cryptocurrencies, nonetheless establishes substantial restrictions on their usage as a means of payment.

In recent years, the country’s crypto usage has grown dramatically. According to recent statistics, Russians owned 12% of the world’s overall cryptocurrency, or about $240 billion.

Denis Manturov endorses crypto

When asked whether or not Russia would be legalizing bitcoin or any other cryptocurrency at an educational event named New Horizon, Manturov responded:

The question is when it 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.

The governor of the Russian central bank, Elvira Nabiullina, has recently declared that the bank will not accept cryptocurrency investments valued at $5 billion each year and that they should be prohibited.

Russian government and Cryptocurrencies

The government and the central bank, on the other hand, may be moving closer to an agreement, according to ManturovThe Russian government is currently discussing the future of bitcoin and mining. Cryptocurrency regulations are also being discussed at present by authorities. A new draft of the bill will reportedly include some modifications, as per reports published last month. The publication stated, “Digital currency may be accepted as a “non-monetary unit of the Russian Federation” as a means of payment.”

This is another significant boost to Bitcoin adoption in the same week as El Salvador hosted representatives from 44 countries to discuss cryptocurrencies. The Russian officials have thus far been vocal in their support for Bitcoin.

Minister of Industry and Trade, Denis Manturov, stated that Russia is on its way to legalizing Bitcoin and other cryptocurrencies. This comes after the Russian government passed a new cryptocurrency law that, while failing to duplicate the country’s previous ban on cryptocurrencies, nonetheless establishes substantial restrictions on their usage as a means of payment.

The government announced the obligatory introduction of blockchain technology in 2020. Russian banks will be allowed to establish cryptocurrency exchanges under the control of the central bank from 2020, and new cryptocurrencies may be produced but only with the permission of the central bank.

This case demonstrates a more hands-on approach to cryptocurrencies and their acceptance in Russia, as opposed to what many predicted would be a near-total ban on cryptocurrency activities. However, in June 2020, the country’s president, Vladimir Putin, signed a bill that prohibited local crypto traders and consumers from paying for products and services with cryptocurrencies.

Mary Brenda

Mary Brenda

I'm a content marketer with interests in emerging niche including Blockchain, Cryptocurrency, Esports, Video games and other tech. I've previous worked with a variety of clients, such as ASUS ROG, BitcoinBink, ESL India, OMEN by HP, Red Bull and more.

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