It was expected that Russia would adopt cryptocurrencies for payments and be the first major country to do so. However, it seems that the Russian president, Vladimir Putin has no such intention. He has recently banned the use of digital currencies as payment methods by signing a new law. The new law makes it compulsory for exchanges to refuse transactions that make use of DFAs (Digital Financial Assets) that fall under cryptocurrencies.
Putin bans the use of digital currencies as payment methods
Putin has signed a new law that will make it illegal to use crypto as a means of payment method in the country. This means Russians can still invest in them and make money. However, the fundamental use of crypto has been restricted by Russia’s president. The ban applies to all types of crypto assets, which include utilitarian digital rights.
The new law was filed in State Duma and was approved by the Chairman of the Financial Markets Committee. Until now, Russia has been more or less positive about crypto. The country’s central bank wanted to ban it, but that also didn’t happen. Though, with this new law, Russians can no longer use anything other than the Ruble for payments.
Russia hasn’t yet regulated cryptocurrencies, and there only law that came back in Jan 2021 mentioned two points. The first is digital financial assets, and the second is Utilitarian Digital Rights. But soon, a better and more comprehensive bill will be released that will ensure that everything that the first bill doesn’t cover is covered.
Making sense of Russia’s decision
Russia’s fiat currency is fiat. They do not want to lag behind the entire world and cut off their own citizens from new tech, so crypto is not banned there. However, its use as payment is now. With crypto being used for payment methods, Russia’s government was surely going to lose its control. This is why they have now properly enforced that the Ruble should be the only currency that is used as a payment method in the country.
What are your thoughts as Putin bans the use of digital currencies as payment methods? And do you think this will affect crypto adoption in Russia? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Sri Lanka warns its citizens against using cryptocurrencies.
