Russia's Central Bank Recognizes Bitcoin Mining's Contribution to a Stronger Ruble

Central Bank's Acknowledgment: Russia's central bank has recognized that Bitcoin mining is contributing to the strength of the ruble, a significant shift from its previous skepticism towards cryptocurrency. Governor Elvira Nabiullina noted that while the impact is difficult to quantify due to unregulated activities, mining is seen as an additional support factor for the currency.

Mining as an Emerging Export: The Kremlin has framed crypto mining as a "new export product" that influences Russia's foreign exchange market, suggesting that revenues from mining, often in hard currency, are impacting FX flows more than previously estimated.

Regulatory Changes: Following years of potential bans, Russia legalized mining and cross-border crypto settlements in 2024 to adapt to Western sanctions. The central bank is now working with the Ministry of Finance to create a regulatory framework for crypto activities, aiming for a comprehensive legal regime by 2026.

Domestic Use Restrictions: Despite the softer stance on mining, Russian authorities maintain that cryptocurrency cannot be used for domestic transactions, emphasizing the distinction between crypto as an export-linked activity and the ruble's status as the exclusive legal tender within the domestic economy.