Russian companies have officially started using cryptocurrencies, including bitcoin, for international trade, marking a significant shift in their approach to circumvent Western sanctions. This development comes after legislative changes by the Russian government, allowing such transactions.
Finance Minister Anton Siluanov confirmed the move, stating that these payments are already in use and will likely expand in 2025. The decision addresses challenges posed by sanctions that have made traditional trade with key partners like China and Turkey more difficult. Local banks in these countries have grown increasingly cautious, wary of Western regulatory scrutiny.
The Russian government has legalized cryptocurrency mining and permitted the use of digital assets in foreign trade. Russia, one of the global leaders in bitcoin mining, now utilizes its domestically mined bitcoin for cross-border transactions under a new experimental framework.
“As part of the experimental regime, it is possible to use bitcoins mined in Russia for foreign trade transactions. Such transactions are already taking place, and we believe they should be expanded further. I am sure this will happen next year,” Siluanov stated. He added that digital currencies are a cornerstone of the future of international payments.
This shift aligns with recent remarks by Russian President Vladimir Putin, who criticized the United States for undermining the US dollar’s role as a global reserve currency by using it for political purposes. Putin claimed that such actions have pushed many nations toward alternative financial instruments like cryptocurrencies. Highlighting bitcoin as an example, he suggested that no single authority in the world can regulate this cryptocurrency.
Sanctions have forced Russian companies to explore creative financial workarounds. Reports indicate that businesses struggling with trade restrictions, particularly with China, are increasingly using cryptocurrencies like Tether and engaging in barter deals to maintain operations.
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