Russian Industry and Trade Minister Denis Manturov has said that the country will sooner or later legalize cryptocurrencies as a means of payment, suggesting that governments and central banks may move closer to settling their differences.
The Russian minister was asked at a forum whether he believed cryptocurrencies would become legal as a means of payment.
In response, Manturov said, “the question is when will this happen, how will it be regulated, now that central banks and governments are actively working on it.”
“But everyone understands that … sooner or later it will be implemented in some format.”
Shortly before Russia sent thousands of troops to invade Ukraine on February 24, the finance ministry presented legislative proposals that clashed with the central bank’s demand for a complete ban.
Russia has plans to issue its own digital ruble, but the government has recently drawn rounds to support the use of private cryptocurrencies, arguing that they could be used in money laundering or terrorism financing.
However, Central Bank Governor Elvira Nabiullina has said that the bank may not welcome investments in cryptocurrencies, which account for about $5 billion in transactions a year by Russians, and proposed a ban on trading and mining them. Is.
Citing financial stability risks from the increasing number of crypto transactions, other central bank officials said last year they did not see room for cryptocurrency use in the Russian financial market.
Manturov said that the rules for the use of cryptocurrencies will be framed first by the central bank and then by the government.
The prices of the biggest cryptocurrencies, bitcoin and ethereum, are down more than 55% in six months, leading some to suggest regulation is needed to control the turmoil.