Russian President Vladimir Putin Asserts that Bitcoin Cannot be Banned

Putin’s Stance on the Future of Cryptocurrencies

During an investment conference in Moscow, President Vladimir Putin declared that no entity possesses the authority to prohibit the use and development of bitcoin or other cryptocurrencies. He emphasized the inevitability of these technologies progressing due to the cost-effectiveness and reliability they offer in comparison to traditional means of payment.

Russia’s Recent Legal Measures on Cryptocurrencies

Recent legislation in Russia classified digital currencies as a form of property in foreign trade operations under a new legal framework, marking a significant milestone in the country’s approach to cryptocurrency regulation.

Utilizing Cryptocurrencies to Mitigate Sanctions

In response to Western sanctions affecting its economy post the Ukraine conflict, Russia is exploring the incorporation of cryptocurrencies for cross-border payments. While cryptocurrencies are not accepted as legal tender, they are being leveraged to bypass economic restrictions imposed by Western nations.

Russia’s Foray into Central Bank Digital Currency

Russia is actively exploring the launch of a central bank digital currency (CBDC) slated for July 2025. In partnership with 12 banks, the country has conducted CBDC trials involving 9,000 participants, reflecting a strategic shift towards modernizing its financial infrastructure.