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Economics and regulation
The use of cryptocurrency debit cards to pay for goods and services does not conflict with Russian law, according to Deputy Finance Minister Alexei Moiseev from the local media. He believes that these transactions are legal as the seller receives the money in Russian rubles.
Read also: No reason to "bury" cryptocurrencies, says Russian Medvedev
The purchase of coffee with Crypto Card is not against the law
The Russian Finance Ministry receives many questions about digital currencies and their uses, Moiseev admitted during the economic forum of Gaidar, an annual event that brings together politicians, academics and business people to discuss the challenges and opportunities for the country. He gave an example with a person who has been prosecuted for paying the bill in a bar with a payment card linked to a cryptocurrency account.
The ministry gave its opinion that the transaction was completely legal, as the cryptocurrency was initially converted into dollars and then into rubles. The coffee eventually got money in Russian fiat currency which is in full compliance with Russian law, the official explained during the conference.
"You can legally pay with these cards.What should not be done is to maintain a foreign account without notifying the tax service and regularly reporting on the movement of funds.You will be responsible for this according to the Code of Administrative Offenses," explained Ivan Tikhonov, founder of the encrypted Bitsmedia.
A number of cryptographic debit cards are currently available in North America and Europe. They are usually integrated with cryptocurrency portfolios and payment platforms that allow instant conversion into fiat currency and purchases both online and in-store as with any other bank card.
Cryptocurrency Not a pyramid anymore
During the forum, Alexei Moiseev also stated that the crypto industry has changed in a positive direction. Cryptocurrencies no longer have signs of financial pyramids, he noted. The deputy finance minister added that the anonymity of digital assets and blockchain transactions is an illusion. It was mentioned by News.ru as mentioned.
The element of the financial pyramid was something I was talking about earlier, for which I have been repeatedly ostracized. But I think that now there are no signs of this, in my opinion.
Cryptocurrencies, or digital financial resources as described by Russian institutions, remain unregulated in the country. It is expected that the Russian parliament will adopt at least three laws relating to the cryptographic sector this spring. The term "cryptocurrency" is not found in the draft text of the regulatory framework, but a ban is not even mentioned. Russian legislators have recently expanded the definition of "digital financial resources" to cover cryptocurrencies and tokens. The update came after the pressures of industry organizations and was supported by the Ministry of Finance.
"Money substitutes" are illegal in Russia, where the ruble is the only legal currency. This applies not only to decentralized digital coins, but also to other legal currencies such as the US dollar. However, bank cards in dollars are accepted for payments as the amount is always converted into rubles during the transaction.
Crypto seen as a potential global currency
The Russian government is probably interested in cryptocurrencies as an alternative to the greenback. The recent statements by an economist from the Russian presidential academy of national economy and public administration (Ranepa), which Moscow will soon invest in bitcoins, have been refuted by officials. However, Ranepa's Rector, Vladimir Mau, shared his opinion that digital currencies have a future and "huge prospects for development".
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Quoted by Tass, Mau said that cryptos could become one of the elements of a new global currency system. "10 years ago, at the beginning of the current structural crisis, we talked a lot about the post-crisis currency configurations: the yuan, the SDR, the strengthening of the role of regional reserve currencies. they must be part of this discussion, "stressed the head of the presidential academy hosting the Gaidar forum. The academic added that the dollar is losing confidence due to the domestic political situation in the United States.
What do you think of the future of cryptocurrency payments? Are you using a cryptographic debit card? Share your thoughts on the topic in the comments section below.
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