Sooner Or Later, Russia Will Legalize Cryptocurrencies As Legal Tender

JAKARTA - Russia will sooner or later legalize cryptocurrency as a means of payment. This was explained by the Minister of Industry and Trade of Russia, Denis Manturov, on Wednesday, May 18 indicating that the government and the central bank may move closer to resolving their longstanding differences regarding cryptocurrencies.

Shortly before Russia sent tens of thousands of troops to Ukraine on February 24, the Ministry of Finance had submitted a legislative proposal that went against the central bank's request for a complete ban on cryptocurrencies in the country.

Manturov was asked in a forum whether he believed cryptocurrencies would become legal as a means of payment. "The question is, when will this happen, how will it be arranged, now the central bank and the government are actively working on it," he replied, as quoted by Reuters.

"But everyone tends to understand that ... sooner or later this will be implemented, in some format or another," he added.

Russia has plans to issue its own digital ruble. But the government has recently emerged to support the use of private cryptocurrencies, having argued for years that they could be used in money laundering or to finance terrorism.

However, the Governor of the Central Bank of Russia, Elvira Nabiullina, said the bank could not accept investments in cryptocurrencies, which are transactions worth about USD 5 billion (IDR 72.6 trillion) per year by Russia, and had proposed banning its trading and mining.

Citing risks to financial stability from the increasing number of crypto transactions, another central bank official said last year they saw no room for cryptocurrencies to be used in Russian financial markets.

Manturov said regulations for the use of cryptocurrencies would first be formulated by the central bank, and then by the government.