Elvira Nabiullina, Governor of the Central Bank of Russia, has reiterated the bank’s opposition to using cryptocurrencies for domestic payments. Speaking at a recent press conference, Nabiullina stated, “We continue to believe that cryptocurrencies should not be used as a means of domestic payment,”.
This position aligns with Russia’s existing legislation, which bans the use of digital assets for domestic transactions. However, Nabiullina emphasized that the central bank supports the use of cryptocurrencies in international trade to counter the impact of Western sanctions. “We do agree, support, and promote projects related to the use of cryptocurrency for external payments, but for domestic payments—no,” she clarified.
To facilitate this strategy, Russia is working on mechanisms for cross-border crypto transactions. The central bank plans to conduct its first experimental international payment using cryptocurrency by the end of 2024.
The move reflects Russia’s broader approach to integrating cryptocurrencies into its financial system. In 2023, Nabiullina authorized the use of cryptocurrency for external settlements as a pilot project.
In March 2024, President Vladimir Putin signed a law allowing the use of digital financial assets, further solidifying Russia’s intent to leverage crypto for international trade while maintaining strict controls on its domestic use.
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