Russian central bank contemplates a ban on using cryptocurrency as a means of payment

The Bank of Russia, together with the Federal Service for Financial Monitoring (Rosfinmonitoring) are preparing a blanket ban on using virtual currencies as a means of payment, a local media outlet Izvestia reports citing knowledgeable sources.

The regulator is convinced that cryptocurrencies are used for money laundering and other illegal activities. The ban is expected to reduce the risks related to fraud. 

The press service of the central bank emphasized that digital currencies cannot be considered as a legitimate medium of exchange.

"We support the idea of introducing a ban on digital currencies as a means of payment," the central bank confirmed. 

Notably, the position of the regulator and Rosfinmonitoring is supported by the Finance Ministry. In summer, the deputy finance minister of Russia, Alexey Moiseev said Russia would never allow using cryptocurrencies as a means of payment for goods and services. 

The head of the central bank of Russia Elvira Nabiullina also repeatedly said that the regulator was against making digital currencies a part of the financial system.