Russia has officially started using Bitcoin and other cryptocurrencies in international trade, marking a significant shift in response to Western sanctions. Finance Minister Anton Siluanov confirmed that Russian companies are leveraging digital currencies following recent legal changes that facilitate their use in global transactions.
Legal Framework Enables Cryptocurrency Payments
The adoption of cryptocurrency aims to counter the challenges posed by sanctions that have disrupted Russia’s trade with key partners like China and Turkey. Local banks, wary of Western regulatory scrutiny, have been cautious in handling transactions involving Russian entities.
This year, Russia approved the use of cryptocurrencies in foreign trade and took steps to legalize cryptocurrency mining, including Bitcoin. As a leading nation in Bitcoin mining, Russia is now using mined Bitcoins in cross-border transactions as part of a pilot program. Minister Siluanov told Russia 24 television, “We’ve already conducted such transactions and believe this practice should expand and develop further. I’m confident we’ll see significant growth in 2025.”
President Putin Endorses Cryptocurrency
Earlier this month, President Vladimir Putin criticized the U.S. for undermining the dollar’s role as a global reserve currency by politicizing its use. He highlighted Bitcoin as a viable alternative, stating that no one can control it globally. His comments suggest strong government support for wider cryptocurrency adoption.
Plans for Bitcoin Reserves
Russia is reportedly planning to establish strategic Bitcoin reserves as analysts forecast a sharp increase in Bitcoin’s value in 2025. Forbes reports that investor confidence in Bitcoin’s growth has surged, driven by figures like Elon Musk and renewed interest in cryptocurrency.
Russia’s legislative efforts are also gaining momentum. Anton Tkachev, Deputy Chairman of the State Duma, has proposed creating a national Bitcoin reserve to strengthen the country’s financial resilience.
In light of sanctions restricting access to traditional international payment systems, cryptocurrencies are emerging as a vital tool for global trade. The Russian Central Bank is preparing to pilot cross-border cryptocurrency payments to facilitate this shift.
Earlier this month, President Putin called Bitcoin a viable alternative to foreign currency reserves after Western nations froze $300 billion of Russia’s assets due to its actions in Ukraine. By legalizing Bitcoin and cryptocurrency use domestically, Russia is adapting its financial strategies to navigate geopolitical challenges.
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Source: Vietnam Insider