Russia Reinforces Ruble-Only Rule, Bans Crypto Payments Domestically

Russian lawmakers have delivered a definitive restatement of the country’s core cryptocurrency policy: digital assets like Bitcoin (BTC) and Ethereum (ETH) are not permitted as a means of payment within its borders. Anatoly Aksakov, chair of the State Duma Committee on Financial Markets and a key architect of Russia’s crypto legislation, recently clarified to state media that there is “no ambiguity in the law.” All payments for goods and services in retail, online services, and business contracts must be settled exclusively in the national currency, the ruble (RUB).

This position is not new but reinforces provisions established in Russia’s 2020 digital assets law, which explicitly removed cryptocurrencies from any form of legal tender status. The underlying principle, as articulated by lawmakers, is that money must be issued and controlled by the state—a standard private digital currencies cannot meet. Officials have confirmed there are no plans to soften this stance, effectively insulating the domestic payment sphere from global crypto adoption trends regardless of market conditions.

The unwavering domestic ban is heavily influenced by the persistent skepticism of the Bank of Russia. Governor Elvira Nabiullina has long warned that cryptocurrencies pose significant risks to financial stability and consumer protection. The central bank has consistently opposed the use of crypto as a medium of exchange and has historically advocated for broad restrictions on exchanges and transactions.

This cautious stance from the Bank of Russia created years of friction with the more pragmatic Ministry of Finance, which favored a path of regulation and taxation over outright prohibition. While this debate spawned various legislative proposals, none succeeded in altering the fundamental prohibition on crypto payments. Today, policymakers appear aligned in preserving the ruble’s monopoly, with the central bank’s risk-averse perspective playing a decisive role in shaping the final policy outcome.

Despite the strict domestic ban, Russian authorities have adopted a notably pragmatic approach to cryptocurrencies in the realm of international trade. Acknowledging the growing role of digital assets globally, Russia permits businesses to use them for cross-border settlements under an experimental legal regime. This workaround has gained substantial traction as the country seeks alternative settlement tools amid pressure from international sanctions, with officials estimating billions of dollars in trade has already moved through such channels.

This dual strategy is further illustrated by Russia’s legalization and tightening oversight of the cryptocurrency mining sector. The contrast is stark: digital assets may serve as investment vehicles or external settlement instruments, but inside the country, the ruble remains the only permissible means of payment. This clear divide—limited use abroad coupled with strict control at home—defines the contours of Russia’s current crypto policy, balancing geopolitical necessity with a firm grip on the domestic monetary system.