Russia has doubled down on a strict ruble-only payment regime while continuing to treat Bitcoin and other private cryptocurrencies solely as investment assets — even as it experiments with crypto for cross-border trade and pushes forward a digital ruble pilot. Key points - Domestic payments must be made in rubles. A 2020 digital-assets law and subsequent government statements explicitly ban the use of Bitcoin and other cryptocurrencies as legal tender inside Russia. Violations can trigger penalties. - Cryptocurrencies are classified as investment instruments. Lawmakers and the Bank of Russia allow Russians to hold, trade and speculate in crypto, but not to use it to buy goods or services. - The central bank remains a vocal opponent of private crypto as a payments medium. Officials warn that decentralized tokens are risky, lack sovereign backing and threaten monetary sovereignty. - Cross-border use is being tested. In response to sanctions and disruptions to traditional payment rails like SWIFT, Moscow has approved an experimental legal regime permitting cryptocurrencies for international settlements — allowing businesses an alternative channel for trade payments outside Western-dominated systems. - The digital ruble moves forward. The Bank of Russia is piloting a central bank digital currency intended to improve oversight, traceability and transaction efficiency. The digital ruble will coexist with cash and non-cash rubles, not replace them. What this means for the market Russia’s approach is pragmatic and selective: clamp down on decentralized crypto in the retail economy to protect monetary control, while permitting blockchain-based transfers where they serve strategic, cross-border needs. For exchanges, traders and international counterparties, the regulatory split — liberal for cross-border settlement, restrictive for domestic payments — creates a mixed landscape of opportunity and compliance risk. The digital ruble, if widely adopted, could further centralize transaction monitoring while providing a state-backed digital alternative to private tokens. What to watch next - The scope and technical rules of the cross-border crypto pilot, and which tokens or platforms are authorized. - Progress and governance design of the digital ruble pilot, including privacy, access and integration with existing banking rails. - Enforcement actions and penalties for domestic use of crypto as payments, which will indicate how strictly the ruble-only rule is applied. In short: Russia keeps Bitcoin out of everyday payments, treats crypto as an investable asset, but is experimenting with blockchain for international trade and developing a state-controlled digital currency. Read more AI-generated news on: undefined/news

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