Russia’s Finance Ministry reports about international payments using bitcoin

Digital assets have made it easier to conduct transactions in the face of sanctions

25.12.2024 - 14:11

2 min

What’s new? Russian companies have begun using bitcoin and other digital currencies in international payments after legislative changes that authorized such use to counter Western sanctions, Finance Minister Anton Siluanov said.

Material by Reuters

What else is known? The sanctions have complicated Russia’s trade with its major partners such as China or Turkey, as local banks are extremely cautious about Russia-related transactions to avoid scrutiny from Western regulators.

This year, Russia allowed the use of cryptocurrencies in foreign trade and passed a law to legalize mining, being one of the world leaders in this area.

Russia’s authorities will ban mining in ten regions by 2031

The restrictions are designed to maintain the balance of energy consumption, taking into account the demands of the industry

“As part of the experimental regime, it is possible to use bitcoins, which we had mined here in Russia. Such transactions are already occurring. We believe they should be expanded and developed further. I am confident this will happen next year,” Siluanov told Russia 24 TV channel, adding that the future lies in international payments in digital currencies.

Earlier this month, Russian President Vladimir Putin said the current US administration is undermining the dollar’s role as a reserve currency by using it for political purposes and forcing countries to turn to alternative assets. He named bitcoin, which cannot be regulated, as one such asset.

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