Russian companies have started utilizing bitcoin and other digital currencies for international payments following legislative changes that enabled such transactions to counter Western sanctions, Finance Minister Anton Siluanov announced on Wednesday.
The sanctions have complicated Russia’s trade with major partners like China and Turkey, as local banks remain highly cautious about Russia-related transactions to avoid scrutiny from Western regulators.
This year, Russia authorized the use of cryptocurrencies in foreign trade and has taken measures to legalize cryptocurrency mining, including bitcoin. Russia is among the global leaders in bitcoin mining.
“As part of the experimental regime, it is possible to use bitcoins, which we had mined here in Russia (in foreign trade transactions),” Siluanov explained during an interview with the Russia 24 television channel, as reported by Reuters.
“Such transactions are already occurring. We believe they should be expanded and developed further. I am confident this will happen next year,” Siluanov stated, emphasizing that international payments in digital currencies are the way forward.
Earlier this month, President Vladimir Putin criticized the current U.S. administration for undermining the U.S. dollar’s role as a reserve currency by leveraging it for political purposes. This, he argued, has pushed many nations toward alternative assets. Highlighting bitcoin as one such asset, Putin remarked that “no-one in the world could regulate bitcoin,” signaling his support for broader cryptocurrency use.
These developments have sparked optimism in the digital asset market, with growing interest in cryptocurrencies. They have also fueled speculation about a potential Bitcoin Strategic Reserve for Russia, particularly after lawmakers recently proposed a similar initiative. Global attention on bitcoin has intensified, with leaders increasingly focusing on the cryptocurrency.
Russia officially recognized Bitcoin as a digital financial asset in 2021 under the “On Digital Financial Assets” law. While the legislation granted DFAs legal status, it prohibited their use as a payment method within the country.
Russia’s support for cryptocurrencies in international trade contrasts with its ban on Bitcoin mining in six regions until 2031. This regulatory stance has elicited mixed reactions, raising questions about the country’s long-term crypto strategy.
Despite the regional mining ban, Russia remains a key player in the global cryptocurrency mining sector. This dual approach highlights the government’s efforts to balance domestic and international crypto policies. By legalizing mining and enabling crypto usage in trade, Russia seeks to mitigate the financial challenges posed by sanctions while addressing local mining-related concerns.
As the country pioneers cryptocurrency usage in trade, the global community is closely monitoring its progress.
