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Expert: Rocky Road Ahead for Crypto Pay in Russia

Tim Alper
Last updated: | 1 min read

A leading Russian analyst has delivered some mixed news for the country’s cryptocurrency enthusiasts.

Source: iStock/Akchamczuk

In an interview with media outlet Verchernaya Moskva, Alexander Kitchenko, a prominent Russian cryptocurrency researcher, investor and a member of the Bitcoin Foundation, said he believes most businesses in the country will find it inconvenient to incorporate crypto pay.

He states, “[Crypto pay] is suitable for large purchases, for example, buying real estate or cars. But buying a cup of coffee using cryptocurrencies is very inconvenient [for businesses], because the market is so volatile.”

The Russian parliament is currently working on three cryptocurrency bills, and a court in the country has already recognized the legislation as legally binding.

But Kitchenko issued a word of caution on the matter, telling the media outlet that nobody could say when the bills would be ready, even though the State Duma has said the bills will be ready “in autumn.”

Kitchenko says that despite the fact that Russia’s legislature and judiciary could soon officially recognize the legal status of cryptocurrencies, “recognition of [cryptocurrencies] as a fully fledged means of payment seems to be unrealistic at the moment, as the Central Bank refuses to recognize them, and insists that the Russian ruble is the only means of payment acceptable in the country.”

However, the analyst suggested that innovative solutions could pave the way for crypto pay initiatives to thrive in the country. “Create a technological solution that automates the process of exchanging cryptocurrency for conventional money could be an answer,” said the expert. This is currently the only conceivable way for [businesses to accept crypto pay.]”

Last month, a Russian politician and tourism chief suggested that crypto pay could represent the future of tourism in the country, while a number of businesses began accepting payment in Bitcoin and altcoins during the recent World Cup.