Russia Ditches Bitcoin for Own Digital Ruble
Russia has been fast-tracking regulations for digital assets in recent months, but one thing remains clear: the government is not fond of Bitcoin. While President Vladimir Putin praised the OG cryptocurrency in 2024, saying 'who can ban it? Nobody,' the country's Prime Minister Mikhail Mishustin has revealed that the digital ruble is where the government's focus lies.
The digital ruble has been available for transactions since September 1, as part of an effort to develop a convenient and independent payment infrastructure in Russia. This move comes after President Putin signed a law regulating digital currencies and digital rights in August, which includes limits on retail investors' ability to trade Bitcoin and other cryptocurrencies.
Retail investors are capped at trading 300,000 rubles ($3,556) per year, while qualified investors have no restrictions. However, using crypto as a form of payment has been illegal in Russia since 2022, with the government instead opting for its own central bank digital currency (CBDC).
Bitcoiners have long criticized the idea of CBDCs, citing concerns that they can be used by governments to surveil citizens and control their spending. The Bank of Russia has indeed settled on a hybrid model for the digital ruble, combining centralized and distributed-ledger components.