Russia again threatens to ban Bitcoin

For the umpteenth time, the Kremlin is considering the use of Bitcoin and other cryptocurrencies within the home country. A corresponding law is already on the table.

The Russian government is currently drafting a law to ban the use of Bitcoin and other cryptocurrencies in the country. This is reported by the country's state news service, NSN.

According to them, they want to "stop the circulation of cryptocurrencies" in the country and allow only state-recognized digital currencies.

Only experimental efforts involving mining and CBDCs would then be possible. Russia is known as one of the world's largest Bitcoin mining hotspots.

The reason for reintroducing a ban is the fact that "cryptocurrencies today are a quasi-currency" that "replace the ruble." Only a ban will ensure the "monetary unity of the country," it said.

The law is scheduled to take effect on Sept. 1 of this year. Russia's attitude toward Bitcoin is considered particularly ambivalent.

While central bank representatives advocate an outright ban on Bitcoin and the like, there are also voices in the government advocating moderate regulation.

Last May, the government announced plans for a national crypto exchange discontinued. At the same time, Russia is working with other BRICS countries to create its own world currency independent of the U.S. dollar.