Digital Ruble Goes Live, Bitcoin Payments Stay Banned in Russia

In Russia, using bitcoin to pay for goods and services is prohibited, but authorities are enthusiastic about a different kind of digital currency: the central bank-issued digital ruble.

According to a report from Tass released on Tuesday, the digital ruble has been operational for transactions in Russia since September 1.

The agency cited a speech by Prime Minister Mikhail Mishustin, stating that the move is aimed at "developing a convenient, fast, and independent payment infrastructure" within the country.

"The circulation of cryptocurrencies has also become legal in the country starting from September 1. The relevant law was signed by the president." — Russian Prime Minister Mikhail Mishustin

The Russian government has moved quickly this year to regulate digital assets. In August, President Vladimir Putin signed legislation that governs the circulation of digital currencies and rights.

Under the new law, only officially registered organizations may function as exchanges, and restrictions have been placed on the amount of cryptocurrency that retail investors are permitted to use.

And what about bitcoin itself?

In 2024, President Putin appeared to express admiration for the original cryptocurrency. "For example, Bitcoin, who can ban it? Nobody," he remarked during a forum appearance.

"And who can prohibit the use of other electronic payment instruments? Nobody, because these are new technologies," he added.

Putin has also noted that Russia holds "competitive advantages" in bitcoin mining, thanks to its plentiful and low-cost energy resources.

Despite that, the Kremlin maintains strict controls over what ordinary citizens can do with cryptocurrency. According to the August law, retail investors may trade bitcoin and other liquid cryptocurrencies up to a limit of 300,000 rubles (approximately $3,556) per year, while qualified investors face no such cap.

Additionally, using cryptocurrency as a payment method has been outlawed in Russia since 2022.

Central bank digital currencies (CBDCs) are a centralized type of digital money issued by a central bank. Many bitcoin supporters have long opposed the concept, arguing it enables governments to monitor their citizens and potentially dictate their spending.

In the United States, President Donald Trump signed an executive order in 2025 barring federal agencies from creating, issuing, or endorsing a CBDC.

In Russia, however, the digital ruble is seen as an effective instrument for surveilling citizens. The central bank of Russia decided early on a architecture that combines a centralized ledger under its control with distributed-ledger elements. The 2021 concept paper described the favored model as hybrid, blending distributed ledgers with centralized components, but the complete technical specifications have never been made public.

On the other hand, Finance Minister Anton Siluanov acknowledged in 2024 that Russian companies are using bitcoin payments in international transactions to bypass Western sanctions.