President Vladimir Putin of Russia stated that it is impossible for anyone to prohibit the use of cryptocurrencies such as bitcoin, and that their development will continue unabated, as reported by the news agency RIA. At an investment conference held in Moscow on Wednesday, Putin posed the question, "Who has the authority to ban bitcoin?" and responded, "No one." He further emphasized, "And who can restrict the utilization of other digital payment methods? No one. Because these represent novel technologies, and regardless of the fate of the dollar, these instruments will inevitably evolve as individuals strive to minimize expenses and enhance reliability." Only last week, Putin signed legislation that categorized digital currencies as a form of property in international trade settlements under an experimental legal framework, thereby taking a significant step forward in the regulation of cryptocurrencies.
This move formed part of the nation's broader strategy to evade Western sanctions that have adversely impacted the economy following its invasion of Ukraine. The sanctions imposed by countries including the United States have prompted Russia to legitimize cross-border cryptocurrency transactions, although their use as legal tender remains prohibited. Additionally, Russia has been exploring the development of a central bank digital currency (CBDC), which is slated for launch in July 2025.
The CBDC has been tested with 12 banks, with the trial being expanded to 9,000 individuals from an initial 600 in September.