The Bank of Russia has once again made it clear: cryptocurrencies are not allowed for domestic payments, clearing the path for the nationwide adoption of its central bank digital currency (CBDC), the digital ruble.
Central Bank Rejects Crypto for Internal Settlements
Speaking at a session in the State Duma, Russia’s lower house of parliament, central bank governor Elvira Nabiullina stated bluntly: “Cryptocurrency cannot be used for payments within Russia.” She emphasized that cryptocurrencies fall outside the control of national regulators, making them unsuitable for domestic transactions. The statement reaffirms a long-standing policy from the Bank of Russia, which has consistently argued against using decentralized digital assets for internal settlements.
Finance Ministry Sees Opportunity in Cross-Border Crypto Payments
While domestic use of crypto remains off-limits, Russian authorities are increasingly supportive of leveraging digital assets for international payments. Finance Minister Anton Siluanov recently highlighted that crypto markets could play a critical role in import payments, currency outflows, and other cross-border financial flows. He called for legalizing and streamlining the international crypto payment market under the supervision of the central bank, indicating a dual approach: ban at home, embrace abroad.
Digital Ruble: A Monopoly Under Construction
The prohibition on domestic crypto payments effectively creates a monopoly for the upcoming digital ruble. According to recent reports, the Bank of Russia plans to fully launch the digital ruble by fall 2026. The Finance Ministry estimates that as of the first quarter of 2025, approximately 20 million Russian citizens hold cryptocurrencies worth over $10.15 billion. The new rule restricts the use cases for these holdings, steering domestic digital transactions exclusively toward the state-backed CBDC.
Why This Matters
By eliminating alternative digital currencies for domestic settlements, the Bank of Russia is positioning the digital ruble as the sole legal digital tender within the country. This move is likely to have far-reaching implications for crypto holders, fintech companies, and the broader Russian economy. It also sets a precedent for other nations considering whether to allow private cryptocurrencies alongside their own CBDCs. The Russian model — a strict domestic ban coupled with regulated international use — could become a blueprint for central banks worldwide.