Russia has reaffirmed its longstanding prohibition on using cryptocurrencies for domestic payments, mandating that all transactions within the country be conducted exclusively in rubles. Anatoly Aksakov, chairman of the State Duma’s Committee on Financial Markets and a key figure in shaping Russia’s crypto legislation, stated on December 16, 2025, that digital assets like Bitcoin and Ethereum will never be recognized as legal tender for payments. In remarks to state news agency TASS, Aksakov emphasized: “Cryptocurrencies will never become money within our country. They can only be used as an investment instrument. If payment is required, it will only be in rubles.” This position aligns fully with the Bank of Russia’s opposition to crypto as a payment method, reinforcing the ruble’s role as the sole legal monetary unit for goods, services, and settlements between individuals and businesses.
The announcement clarifies ongoing regulatory debates, stemming from a 2020 law that initially banned cryptocurrency payments amid concerns over monetary sovereignty, financial stability, and tax enforcement. While the central bank, led by Governor Elvira Nabiullina, has historically advocated for broader restrictions—including on exchanges and mining—the government has taken a more nuanced approach, permitting cryptocurrencies as property for ownership, trading, and investment purposes. Aksakov noted that major Russian banks have reported growing customer interest in crypto-related products, yet institutions remain barred from processing digital currency payments domestically.
Despite the strict domestic ban, Russia continues to embrace cryptocurrencies in select areas. The country has legalized mining, positioned itself as a global leader in Bitcoin hashing power, and authorized limited use of digital assets for cross-border trade under an experimental regime to circumvent Western sanctions. Reports indicate Russian firms have already facilitated billions in international transactions using crypto. Additionally, the Bank of Russia is advancing its digital ruble central bank digital currency (CBDC) pilot, aiming for enhanced oversight and efficiency in national payments without relying on private cryptocurrencies.
This reaffirmation comes as Russia leads Europe in crypto adoption, with Chainalysis data showing $376.3 billion in on-chain transactions received between July 2024 and June 2025. However, the ruble-only mandate underscores priorities of controlling inflation, preventing capital outflows, and maintaining central bank authority. Analysts view the policy as a balanced yet cautious framework, allowing innovation in mining and foreign trade while safeguarding the domestic financial system from volatility and unregulated flows. As global crypto markets evolve, Russia’s approach highlights a clear divide: investment and international utility yes, everyday payments no.