The Russian minister for Industry and Trade, Denis Manturov says that the country will soon adopt Bitcoin as a means of payment, sooner or later. The minister said that the central bank is working with the government to legalize the cryptocurrency as a means of payment.
According to Reuters, Manturov made the statement on May 18 at an educational event, The Horizon. This comes as Russia seeks alternatives payment methods in the wake of persistent sanctions from the Unites States and her allies over the invasion of Ukraine.
According to the minister,
“But everyone tends to understand that this is a trend of time, and sooner or later, in one format or another it will be carried out,”
Months earlier, the Russian central bank expressed concerns about the use of cryptocurrencies, citing their effects on the stability of the country’s financial system.
With the statement from the industry and trade minister, it has become obvious that Russia is exploring all avenues to maintain the stability of the ruble by adopting more payment systems acceptable to trading partners.
Since the invasion and the announcement of sanctions by western countries, Russia is increasingly moving away from the USD as a reserve currency. Its move towards BTC is part of the ongoing de-dollarization of the country’s payment system.
In his speech, the minister said that the legalization of Bitcoin, and by extension, cryptocurrencies is inevitable for Russia.
The popularity of cryptocurrencies has increased in Russia since the sanctions as more Russians move towards USDT and Bitcoin to avoid sanction-induced inflation. The minister’s statement is one of the few times that a high-ranking Russian government official has been categorical in the country’s plan to legalize Bitcoin. It is not yet clear exactly when this will come into effect.
Last February, the Ministry of Finance submitted a draft for the regulation of cryptocurrencies. The ministry says that it is working to see the bill passed into law. It is also looking at the taxation regimen for digital assets.
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