Putin bans the use of digital currencies as payment methods
Putin has approved a new rule that forbids the use of cryptocurrencies in the nation’s financial system. This implies that Russians can continue to invest in them and profit. However, the president of Russia has limited the fundamental use of cryptography. All forms of crypto assets, including digital rights with a utilitarian purpose, are prohibited.
The new law was submitted to the State Duma and approved by the head of the committee overseeing financial markets. Russia has generally been supportive of cryptocurrencies up until this point. It was also wanted to be prohibited by the nation’s central bank, but that didn’t happen. However, as a result of this new rule, Russians can no longer make payments in any currency other than the ruble.
Cryptocurrencies have not yet been regulated in Russia, and the single regulation that was passed there in January 2021 only included two mentions. Digital financial assets and utilitarian digital rights are the first and second, respectively. However, a new and more thorough measure will be introduced soon to make sure that everything left out of the first draft is included.
The fiat currency of Russia is fiat. They do not want to fall behind the rest of the world and exclude their own people from emerging technologies, hence cryptocurrency is not prohibited there. However, it is currently used as payment. Cryptocurrency payment techniques mean that Russia’s authorities will inevitably lose control. The only currency that may be used to make purchases in the nation is the ruble, which is currently properly enforced.