Legalization of Cryptocurrencies in Russia is closer than it seems

Russian Industry and Trade Minister Denis Manturov said that sooner or later the country will legalize cryptocurrencies as a means of payment.

“The question is when this happens, how it will be regulated, now that the central bank and the government are actively working on it, but everyone tends to understand that sooner or later this will be implemented, in some format or other,” Manturov said.

Manturov’s statement came after he was asked if he believed cryptocurrencies would become legal tender.

The conflict between Russia’s finance ministry and the central bank has stalled any plan to recognize and accept cryptocurrencies. Manturov said that the government and the central bank are already working to resolve their differences.

While the Russian government supports the country having its own digital rouble, supporting the use of private cryptocurrencies, Russia’s central bank governor, Elvira Nabiullina, rejected the plan.

Nabiullina emphasized the downside of such an idea, including risks to financial stability. Other central bank officials also said that they saw no room for cryptocurrencies in the Russian financial market.

The Russian government is already working on a digital ruble and amid the crisis, the officials seem to look on the cryptoas their option to avoid international trade embargo using USD. It is estimated that over 17.3 million people, 11.9% of Russia’s total population, currently own cryptocurrency, which is 9% more than 2 years ago according to a statistical report.