Russia Considers Ban on Using Cryptos As Means of Payment


November 29, 2019 10:57 pm

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Russia has planned to ban the use of cryptocurrencies to pay for goods and services. According to a report, multiple sources allegedly familiar with ongoing discussions at the country’s central bank, financial regulator and Ministry of Finance in support of a ban.

As of now, cryptocurrencies can be used for e-commerce and many Russian freelancers, including programmers, designers, and copywriters, agree to receive their salaries in Bitcoin (BTC) or Ethereum (ETH), Vladislav Antonov told Izvestia. 

Antonov, an analyst at Alpari Information and Analytical Center, said that while they are not officially permitted, cryptos are often used to purchase a range of goods and services such as tickets, computers, and household appliances, renting an apartment, or booking a hotel.

If Izvestia’s sources are correct, Russian regulators would consider a ban is necessary to prevent cryptocurrencies from being used as payment, citing their concerns about crime. Alexey Yakovlev, the deputy head of the banking regulation department of the Ministry of Finance, who reportedly reaffirmed at a recent conference on crypto-economics, “We do not see any basis for cryptocurrencies to be used as a means of payment.”

The press department of the central bank has not officially confirmed the drafting of a formal bill, but emphasized that private cryptocurrencies cannot be equated with fiat currency and cannot be considered a legitimate way to pay for purchases: 

Alexey Yakovlev added:

“If a decision is made to ban cryptocurrencies as a means of payment at the level of legislation, we consider it appropriate to support this position.”

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