Russia Bans Bitcoin Payments, Launches Digital Ruble for Transactions

Bitcoin is banned for payments in Russia, while the digital ruble has been available for transactions since September 1. Prime Minister Mikhail Mishustin emphasized the need for a convenient and independent payment infrastructure. A law signed by President Vladimir Putin in August regulates digital currencies, allowing only registered entities to operate as exchanges and limiting retail investors to 300000 rubles per year for trading Bitcoin and other cryptocurrencies. Despite Putin's earlier praise for Bitcoin, its use as a payment method has been illegal since 2022. The digital ruble, a centralized digital currency, is designed to maintain government control over citizens' transactions. The Bank of Russia has developed a hybrid model combining centralized and distributed ledger technologies. Bitcoin is still utilized by companies for international payments to circumvent Western sanctions, as acknowledged by Finance Minister Anton Siluanov.