Russia is ready to legalize cryptocurrencies, but there's a problem

The latest version of Russia's draft cryptocurrency bill suggests that the country is preparing to legalize cryptocurrencies in the near future. However, other features of the bill, particularly its use of cryptocurrencies as legal cash, have raised some concerns.

The bill's use of cryptocurrencies as legal cash is a major move. The initial draft of the plan, submitted in February, stated that cryptocurrencies would not be considered legal cash. This approach appears to have been modified by the Ministry of Finance, albeit with important qualifiers.

Russia will accept certain cryptocurrencies as legal tender.

However, the state will only accept decentralized tokens. This almost certainly means that dollar-backed stablecoins like Tether (UST) will not be accepted as payments. The government has not yet decided which cryptocurrencies will be accepted as tenders, according to the business newspaper.