Russia has joined the list of countries that have adopted cryptocurrency as a means of payment. However, this might be less so from an eagerness to adopt the world of crypto, but rather may be related to the sanctions imposed on the country due to the ongoing war between Ukraine and Russia.
This Russian court ruling that allows crypto as a payment method came just a week after the Russian Industry and Trade Minister Denis Manturov hinted that the country would soon make crypto a legal form of payment. As Manturov foretold, the City Court of St. Petersburg made a ruling that officially recognized digital assets.
Analysts see this as a way to cushion the effect of the sanctions imposed by various countries on Russia ever since the war in Ukraine started on Thursday, 24 February 2022.
This latest move by Russia, and several other countries, during the present bear market the world is currently experiencing shows the prominence crypto has gathered over the years. However, the question of cryptocurrency regulation will be the next question in need of an answer.
It is worth noting that, ever since the start of the war with Ukraine, lots of multinational companies have deserted Russia. This situation has had a strongly adverse effect on the economy of Russia. The rubble, which is the official currency of Russia, has also suffered a big setback since the beginning of the war with Ukraine, massively declining in value.
Those Russians that are crypto-savvy will definitely be happy with this news, as it makes cross-border payment easier when Russian assets, FIAT currencies, and banks are being sanctioned.
As one of the first countries in Europe to make crypto a legal form of payment, Russia might actually be positioning itself as a crypto hub for investors. However, its ongoing fractured relationship with a number of world powers makes this reality quite unlikely, at least for the time being.
Also worth noting is that prior to this announcement, Russia did not have the friendliest attitude toward DeFi and crypto, and many state banks denounced the concept.
Times are, however, changing. Piron and Yevgeny Prigozhin were sentenced to jail in the city of St.Petersburg for defrauding over $1 million in digital assets from another man. The initial ruling by the court did not convict them; however they were later convicted with an appeal after the court ruled crypto as a means of payment. This shows that Russia is willing to regulate the space, when many other countries won’t.
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