Russia Rolls Out Digital Ruble as Crypto Trading Remains Restricted

The Russian government has launched its central bank digital currency (CBDC), known as the digital ruble, for transactions in Russia. This move comes after a law was signed by President Vladimir Putin in August that limits crypto payments and requires only registered entities to operate exchanges.

The law also caps retail crypto trading at 300,000 rubles ($3,556) per year. Despite this, the government seems keen on regulating digital assets, with Prime Minister Mikhail Mishustin stating that it's part of 'developing a convenient, fast, and independent payment infrastructure' in Russia.

Interestingly, while Bitcoin is banned for making payments in Russia, the government has admitted to using crypto as a tool to counter Western sanctions in international payments. The Bank of Russia has chosen a hybrid CBDC architecture that centralizes control and raises security and surveillance concerns for crypto adoption.