Russia Confirms Bitcoin and Ethereum Cannot Be Used for Payments as Ruble Remains Sole Legal Tender

Russia Confirms Bitcoin And Crypto Will Never Be Used For Payments

Russia’s stance on cryptocurrency payments is becoming increasingly definitive.

Lawmakers have reinforced that Bitcoin, Ethereum, and other digital currencies will not be allowed as a medium for domestic transactions, insisting that only the ruble can serve as legal tender.

While cryptocurrencies may be held and traded as investment assets, any payment for goods or services must be conducted exclusively in rubles.

Ruble Remains The Only Legal Currency

Anatoly Aksakov, chair of the State Duma’s Committee on Financial Markets and one of the architects of Russia’s crypto legislation, told the state news agency TASS,

“We must understand that cryptocurrencies will never become money in Russia. Cryptocurrencies can only be used as investment instruments. Where payment is required, it must only be conducted in rubles.”

He confirmed that domestic law already prohibits the use of digital currencies for purchases, treating them as private property rather than legal money.

Central Bank Holds Firm Against Crypto Payments

The Bank of Russia has long opposed allowing cryptocurrencies for domestic payments.

Governor Elvira Nabiullina has repeatedly called for sweeping restrictions, including bans on crypto transactions, exchanges, and Bitcoin mining.

The central bank’s cautious approach is aimed at safeguarding financial stability and protecting consumers from the risks associated with digital assets.

Since the 2020 legislation banning crypto payments, the Ministry of Finance and the central bank have been at odds over regulation.

While the central bank preferred a near-total ban akin to China’s approach, the finance ministry advocated for regulated oversight and taxation.

Competing bills on crypto either stalled in the State Duma committees or failed to gain consensus, leaving the framework unresolved for several years.

Regulation Becomes The Priority Despite Payment Ban

Despite domestic restrictions, Russia is embracing cryptocurrencies in other areas.

Aksakov highlighted that Russian businesses have already conducted billions of dollars in cross-border trade using crypto as a settlement tool.

President Vladimir Putin has also expressed support for the growth of the country’s crypto mining sector, signalling a pragmatic shift driven by economic and trade considerations.

Major banks have noted growing demand for crypto-related investment products, even as domestic use for payments remains banned.

Evgeny Masharov, a member of the Civic Chamber’s Commission on Public Review of Bills and Regulatory Acts, said the cryptocurrency sector urgently needs regulation.

He added,

“If [cryptocurrencies] were legalised, federal budget revenues would see a significant increase. And most importantly, law enforcement agencies could thwart attempts to launder funds stolen through voice phishing fraud.”

Cross-Border Transactions Allowed But Domestically Restricted

While cryptocurrencies are barred for internal payments, authorities acknowledge their practical use in international trade.

Companies leverage crypto to navigate global currency restrictions or facilitate cross-border deals, operating within defined legal channels.

Nabiullina has indicated that Russia permits certain external uses of digital assets under controlled conditions, though domestic settlements remain strictly ruble-based.

Banks Respond To Growing Crypto Interest

Russian banks report rising customer interest in crypto investment opportunities, yet are constrained from processing payments in digital currencies.

Financial institutions are offering crypto-linked investment services, reflecting demand without violating the domestic ruble-only requirement.

This balance illustrates Moscow’s careful approach: embracing digital asset innovation for investment and trade while maintaining full control over the domestic monetary system.