On November 3, 2025, Bank of Russia Governor Elvira Nabiullina told the State Duma that cryptocurrencies cannot be used for settlements within the country, reinforcing the central bank's long-standing opposition to crypto as a domestic payment tool. Speaking at a session of the Budget and Tax Committee, Nabiullina stated clearly: “Cryptocurrency cannot be used for payments within Russia.” The statement underscores the regulator’s position that national authorities cannot control decentralized digital assets, making them unsuitable for domestic transactions.
Central Bank's Hardline on Domestic Crypto Payments
The governor’s remarks are consistent with the Bank of Russia’s policy over the past years. In 2022, the central bank proposed a sweeping ban on cryptocurrency issuance and circulation, although the plan was later softened amid international sanctions and the need for alternative payment routes. However, the prohibition on using crypto for domestic payments has remained a red line. By closing this channel, the regulator aims to prevent capital flight, tax evasion, and the erosion of monetary sovereignty within the ruble zone.
Dual Approach: Domestic Ban vs. International Embrace
While Russia shuts the door on crypto for internal use, it is actively exploring cryptocurrency for cross-border transactions. Finance Minister Anton Siluanov recently highlighted that Russia sees “significant work” in leveraging crypto for import payments, fund transfers, and capital outflows. He called for legalizing and streamlining the international crypto payment market under the central bank’s oversight. This dual approach — banning crypto domestically while tolerating or even encouraging it internationally — reflects Russia's strategy to preserve monetary control at home while using crypto as a tool to bypass Western financial restrictions abroad.
The Digital Ruble: Monopoly by Design
The renewed domestic crypto ban directly supports the upcoming launch of the digital ruble, Russia’s central bank digital currency (CBDC). The nationwide commercial rollout is scheduled for fall 2026. Following successful pilot phases in several cities since 2023, the digital ruble is designed to become the sole legally recognized digital payment instrument within the country. By eliminating competition from cryptocurrencies, the Bank of Russia ensures that the CBDC captures maximum user adoption and trust. This mirrors strategies employed by other nations — such as China’s digital yuan — where limiting alternative digital currencies helps establish the state-backed CBDC as the dominant digital payment method.
20 Million Crypto Holders Face New Realities
Russia’s Ministry of Finance estimated that as of Q1 2025, approximately 20 million Russian citizens hold cryptocurrencies, with a combined value exceeding $10.15 billion. While the latest reaffirmation of the domestic ban does not criminalize holding or trading crypto on foreign exchanges, it explicitly bars using these assets to pay for goods, services, or transfer value within Russia. This effectively shrinks the utility of crypto holdings for domestic users, pushing them toward either converting to fiat through licensed channels or using crypto exclusively for international transactions — a use case the government explicitly supports.
Outlook: A Controlled Digital Economy
The Bank of Russia’s stance is likely to shape the country’s digital finance landscape for years to come. Domestically, the digital ruble will enjoy an uncontested monopoly as the only digital legal tender. Internationally, cryptocurrencies will serve as a financial lifeline for trade and investment under sanctions. This bifurcated system could become a model for other sanction-hit or sovereign-focused economies. For the global crypto industry, Russia’s decision confirms a growing trend: CBDCs and decentralized cryptocurrencies will increasingly be compartmentalized by regulators, with domestic use reserved for state-backed digital money and cross-border use left as the main arena for private crypto assets.