(PresidentialInsider.com)- Russian President Vladimir Putin has approved a bill outlawing digital payments nationwide.
Vladimir Putin, the president of Russia, signed a new law on July 16 that outlawed the usage of digital assets to pay for goods and services there. According to the legislation, cryptocurrencies and NFTs are no longer recognized as legitimate payment methods in Russia. However, these assets can still be bought, sold, and exchanged.
According to reports, recent development follows similar ambiguous signals from Russian officials over the previous few years. Putin initially mentioned Bitcoin as something that could not be disregarded in 2015, even though it is not backed by anything. Most crypto-optimists at the time interpreted this as evidence of Russia’s adoption of digital assets.
However, two years later, Putin had grown sick of cryptocurrencies and pressed for regulation, claiming they posed “severe hazards.” He then published five further decrees on cryptocurrencies, including initial coin offerings (ICOs) guidelines.
Reports show Putin seemed to be rushing to enact cryptocurrency regulation in 2019. He ordered his government to set a deadline, asking them to pass federal rules for digital assets by July 1st, 2019.
It wasn’t until Putin signed two bills into law in 2020 that actual restrictions took shape. According to these new regulations, cryptocurrencies like Bitcoin, Ether, and others could only be exchanged, not used to buy or pay for products and services.
Putin said some unexpected things in an interview near the end of 2021. Cryptocurrencies “have the right to exist” and “may be used as a form of payment,” he claimed.
According to media reports, the Russian central bank called for a broad ban on cryptocurrency this year. However, Putin signed a law without such a severe restriction.
The current conflict between Russia and Ukraine may be a reason for the country’s altered attitudes regarding digital assets. Russia tolerates digital assets as a means of wealth storage rather than outright banning them because of international sanctions. To circumvent sanctions, Russia can cooperate economically with other nations that have digital assets.