Bitcoin and other cryptocurrencies will be treated as currency in Russia. According to local news agency RIA Novosti, Russia’s finance minister has stated that the country will accept Bitcoin and other cryptocurrencies as genuine financial instruments.
According to local news sources, Russia’s finance ministry has produced a draught bill that designates cryptocurrencies like Bitcoin as legal tender.
If passed, the bill would recognise cryptocurrencies as a sort of financial instrument, bringing the country closer to countries like Japan, which handle digital money like fiat currency.
During statements carried by state news agency TASS on Thursday at an economic symposium in St. Petersburg, Russian President Vladimir Putin said that the formation of a regulatory framework for cryptocurrencies is “absolutely necessary.”
Bitcoin and other cryptocurrencies will be considered as cash in Russia, according to the Russian authorities. The measure is intended to assist combat fraud and money laundering, but it also shows that Russia believes in cryptocurrency’s long-term viability.
The important point is that this shows Russia views cryptocurrencies as a commodity that can be used to purchase goods and services, implying that other countries would follow suit. Some governments have previously experimented using cryptocurrencies as a legal tender, but as more people become aware of this news, more countries may follow suit.