Russia to Legalize Cryptocurrencies and Launch Digital Ruble for Public Use
Russia has announced plans to legalize cryptocurrencies for international settlements by July 2025 and introduce its own central bank digital currency (CBDC), the digital ruble, in a bid to address economic challenges and navigate international sanctions.
Legislation Impacting Cryptocurrencies in Russia
Under the proposed legislation, cryptocurrencies will be legalized for international settlements, placing them under the same regulatory framework as traditional foreign currencies. This move aims to ease transaction difficulties faced by Russian businesses due to sanctions.
Once the bill is passed, it is expected to take effect on September 1 and could lead to more scrutiny from countries like the United States, which has been cracking down on violations of international sanctions through cryptocurrencies.
The Launch of the Digital Ruble
Russia’s central bank is gearing up to introduce the digital ruble to the public by July 2025. This digital currency, developed since 2017 and initially known as the “crypto ruble,” will complement existing cash and non-cash rubles, providing a new digital payment option.
After successful pilot testing involving employees from multiple banks, the transition to the digital ruble is expected to be gradual to ensure a seamless user experience.
These strategic moves by Russia aim to enhance financial resilience, mitigate the impact of sanctions, and foster stronger international trade relationships through the use of cryptocurrencies and digital currencies.
