Sooner or later, Russia will legalize cryptocurrencies | Digital Ruble, Russia


For a few weeks now, Russia has been making headlines around the world. It’s no secret that it is in conflict with Ukraine, which has affected its economy after the US and Europe imposed a series of sanctions to prevent Russia from conducting international transactions normally.

From the moment the United States and Europe imposed sanctions, speculation began that Russia could use cryptocurrencies to evade sanctions. Some agreed, others adamantly refused, and exchanges assured that they would carefully review the situation to prevent sanctioned authorities from trading in cryptocurrencies.

In retrospect, this move seems logical enough given Russia’s current economic situation, but it’s a drastic change for the Russian government. Just look at the statements of the heads of some organizations or the Bank of Russia.

At the beginning of the year, when the role of cryptocurrencies in the Russian market began to be discussed, the Central Bank did not agree to the inclusion of such assets in the traditional system, but it arises due to a conflict of interest. The possibility of Russia legalizing cryptocurrencies as a freely tradable asset is no longer just a possibility, but a reality.

Russia can legalize cryptocurrencies at any time

It would have looked pretty ridiculous if it was claimed a year ago that Russia could legalize cryptocurrencies, but things are changing and cryptocurrencies may be the best option for the Russian government at this point. Recently, the country’s Minister of Industry and Trade said that the government and central bank will sooner or later have to legalize the use of cryptocurrencies.

What the minister is suggesting is that these organizations will have to implement new regulations to incorporate cryptocurrencies into the financial system so that they can function as alternative means of payment for users in the country. The real problem is that the Russian government and central bank are still trying to resolve the differences between the two sides. On the one hand, there is the central bank, which denies this possibility, but the government is much more open.

It is clear that this decision was not accidental, since it is closely connected with the outbreak of the war between Russia and Ukraine. This is why the Ministry of Finance has submitted a proposal for the legalization of cryptocurrencies, but it seems that the central bank does not intend to support the proposal, as the ideal way for this organization is to completely ban the use of cryptocurrencies for protection. traditional economic system, the problem is that the traditional system is blocked.

When asked about how cryptocurrencies will be regulated, the minister of commerce and industry assured him that this is something that needs to be agreed between the government and the central bank. He did not comment on the approach these two institutions would take, but assured him that approval was imminent and that the chances of the government putting further pressure on the central bank were fairly high.

digital ruble

In addition to the possibility or the fact that cryptocurrencies will be legalized, Russia has begun planning to issue a digital currency, the digital Ruble, by the central bank. It should be noted that the Russian government has supported the use of private cryptocurrencies in recent years and has claimed that private cryptocurrencies are a tool for money laundering and terrorist financing, but if we look at the increase in cryptocurrency exchanges in Russia, we can see that. Usage has increased, and high stakes people are predicted to be making large transactions, not just retail investors.

The problem with the digital ruble is that it is a very time consuming project. A few weeks ago, there was speculation that the cryptocurrency could be ready for use by the end of the year, but given other cryptocurrency projects of this style, this is highly unlikely. Having developed its own central bank currency for several years, China did not successfully launch it after several tests.

It is estimated that it may take about 5 years for such a project to be ready. The problem is that Russia does not have this time and needs a quick solution. But the central bank does not make the government’s job any easier, because it is likely to regulate before handing over power to the government, and the possibility of a ban is still not excluded if the government does not change its position.

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