Russia Considers Cryptocurrencies as a Contractual Means of Payment

Jafrin  |  May 25, 2021

Duma, the lower house of parliament of Russia is reportedly preparing to permit cryptocurrencies as a contractual means of payment. The proposals are yet to be reviewed but the chairman of the Committee on Legislation and State Building, Pavel Krasheninnikov believes it’s currently under an ongoing review.

Cryptocurrencies Might be Considered a Contractual Means of Payments in Russia

The State Duma is considering amendments to a Russian Civil Code where cryptocurrencies might be considered “a contractual means” of conducting payments in the country, according to the Chairperson of the Duma Committee on Legislation, Pavel Krasheninnikov.

Speaking at the St. Petersburg Legal Forum, Krasheninnikov says:

"We believe that it is necessary to make amendments to the Civil Code. Now we are in the appropriate approval procedure but there is an understanding that digital monetary units, as they have been called, can be a contractual means of payment."

The proposals are yet to be reviewed but are currently undergoing a review.

Digital assets are regarded as property under Russian law. Should the proposal come into effect, it will be legal to use cryptocurrencies as a contractual means of payment in the country.

Russia’s ban on cryptocurrency payments officially took effect in January this year. Last year, a member of the State Duma, Anatoly Aksakov argued that legalizing cryptocurrency payments would ruin the country’s financial system.

Digital Ruble Trials to Commence in 2022

Russia is working to release its own state-run digital currency.

The head of Russia’s Central Bank, Elvira Nabiullina, has confirmed that the country will begin piloting its digital ruble in 2022, as reported by the Bloomberg Terminal.

Earlier, the country’s central bank revealed plans to start testing its CBDC naming the same year, back in April.

Besides Russia, countries like China, South Korea, Japan are already gearing up in launching their own central bank digital currencies (CBDC).

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