Russia is now using Bitcoin and other cryptocurrencies for international payments, a move aimed at countering the impact of Western sanctions. Finance Minister Anton Siluanov announced the development, highlighting new legislation that enables such transactions.
“Sanctions have disrupted trade with key partners like China and Turkey, as local banks remain cautious of scrutiny from Western regulators,” Siluanov explained on Russia 24 television.
This year, Russia legalized cryptocurrency use in foreign trade and introduced regulations for Bitcoin mining. As a leading Bitcoin miner globally, the country is leveraging its resources to facilitate these payments.
“Bitcoins mined in Russia are already being used in trade, and this practice will expand further next year,” Siluanov stated. He emphasized the potential of digital currencies in reshaping international payments.
President Vladimir Putin also criticized the U.S. for politicizing the dollar, calling it a move that forces countries to seek alternatives. He singled out Bitcoin as a key example, highlighting its decentralized nature and global appeal.
Russia’s pro-crypto trade attitude stands in stark contrast to its recent decision to ban Bitcoin mining in 10 regions within the country until 2031.
However, despite the ban, Russia remains a global leader in the cryptocurrency mining industry. By legalizing crypto usage in trade and managing the local impact of mining activities, Russia aims to offset the financial difficulties created by western sanctions in response to the Ukraine conflict.
