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Russian Lawmaker: Crypto Pay Could ‘Destroy the Financial System’

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Last updated: June 26, 2023 06:54 EDT

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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Last updated:

June 26, 2023 06:54 EDT

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The chief architect of Russia’s crypto regulations has defended a new Russian law that outlaws payment in bitcoin (BTC) and altcoins – claiming that a failure to do so could have spelled the end for the ruble-powered Russian financial system.

The comments were made by the head of the parliamentary committee on financial markets Anatoly Aksakov, in an interview with the Russian-language edition of state-controlled Russia Today.

Aksakov stated that Moscow had no plans to “legalize digital money as a unit of accountancy,” adding,

“[Cryptoassets] can be used as a method of payment for goods elsewhere in the world, but not in Russia. The recognition of digital coins as an official means of payment on a par with the ruble would mean the destruction of the financial system, which ensures the stable operation of the entire economy. Our plans do not yet include the legalization of [cryptoassets] as a payment alternative to the ruble.”

However, Aksakov suggested that Moscow has high hopes for its growing blockchain technology sector. He suggested that the technology could help boost international trade – and even help Russia bypass the burden of international sanctions.

He said,

“Business can now attract investments from foreign partners, as well as sell their goods on blockchain networks. At the same time, the blockchain technology, due to its technical features, makes it possible to bypass sanctions-related restrictions, which helps contribute to the development of trade.”

As previously reported by Cryptonews.com, that although the new law does outlaw crypto payments, it is unlikely to impact the sector much, and amounts to little more than a “glossary of crypto concepts” – with a more comprehensive set of regulations likely to follow in 2021 at the earliest.
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