Russia has barred bitcoin from being used for payments, but the government has thrown its weight behind one particular form of digital money: its own central bank digital currency. The split approach highlights a question confronting governments worldwide as money goes digital: whether to rely on permissionless networks that no single party controls, or centrally issued instruments under direct state supervision.

The digital ruble has been available for transactions in the country since September 1, according to a Tuesday report from the state-run news agency Tass. Citing remarks delivered by Prime Minister Mikhail Mishustin, the agency said the rollout was part of "developing a convenient, fast, and independent payment infrastructure" in Russia. The launch follows a pilot program the Bank of Russia has run with a limited group of banks since 2023.

JUST IN: Russian Prime Minister Mikhail Mishustin says: "The circulation of cryptocurrencies has also become legal in the country starting from September 1. The relevant law was signed by the president." — Bitcoin Magazine (@BitcoinMagazine) September 22, 2026

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Russia has been fast to regulate digital assets this year. In August, President Vladimir Putin signed a law regulating the circulation of digital currencies and digital rights in the country. The legislation states that only registered entities can operate as exchanges, and it puts limits on the amount of crypto retail investors can use. In effect, the framework treats crypto as an asset that can be held and traded under supervision, while keeping it out of everyday payments.

So where does bitcoin fit in? In 202, Putin appeared to praise the original cryptocurrency. "For example, Bitcoin, who can ban it? Nobody," he said at a forum at the time. "And who can prohibit the use of other electronic payment instruments? Nobody, because these are new technologies."

The president has also spoken about how the country holds "competitive advantages" when it comes to bitcoin mining, thanks to the abundance of cheap energy available across Russia. Industry estimates have repeatedly ranked Russia among the world's largest bitcoin mining markets.

Even so, the Kremlin keeps a tight grip on what its citizens may do with crypto. Under the August law, retail investors are limited to trading bitcoin and other liquid cryptocurrencies, capped at 300,000 rubles ($3,556) per year. Qualified investors face no such restrictions. Using crypto as a form of payment, meanwhile, has been illegal in Russia since 2022.

Central bank digital currencies — or CBDCs — are a centralized form of digital money, issued and operated by a central bank rather than a decentralized network. Bitcoiners have long criticized the concept, warning that such products could be used by governments to surveil citizens and ultimately even control their spending. U.S. President Donald Trump signed an executive order in 2025 prohibiting federal agencies from establishing, issuing, or promoting a CBDC. A handful of retail CBDCs are live elsewhere, including the Bahamas' sand dollar and Nigeria's eNaira, while large economies such as China and the euro area remain in pilot or preparation stages.

In Russia, by contrast, the digital ruble serves as a direct way for the state to keep citizens in check. The Bank of Russia settled early on an architecture that mixes a centralized ledger it controls with distributed-ledger components. Its 2021 concept described the preferred model as hybrid — distributed ledgers combined with centralized components — and the full technical details have never been published; how much of that architecture is disclosed as the rollout proceeds remains an open question.

Bitcoin payments, on the other hand, are being used by companies in international payments to counter Western sanctions, Finance Minister Anton Siluanov admitted in 2024.

This article, written by Mathew Di Salvo, first appeared on Bitcoin Magazine.