
Russia has begun using bitcoin and other digital currencies in international payments, following recent legislative changes that allow such transactions to help mitigate the impact of Western sanctions. Finance Minister Anton Siluanov confirmed on Wednesday that cryptocurrencies are now being utilized in foreign trade, offering Russian businesses an alternative to traditional banking methods that are heavily scrutinized by Western regulators.
The sanctions, which have complicated Russia’s trade with key partners such as China and Turkey, have led local banks to exercise extreme caution when handling Russia-related transactions. This shift has prompted Russia to find new methods to continue its global trade operations.
This year, the Russian government officially permitted the use of cryptocurrencies for foreign trade, while also making moves to legalize cryptocurrency mining, particularly bitcoin. Russia has emerged as one of the world’s leaders in bitcoin mining, with the government now seeing digital currencies as a key component of the nation’s future trade and financial systems.
Siluanov stated that under the country’s experimental regime, it is now possible to use bitcoin mined in Russia for foreign trade transactions. “Such transactions are already occurring, and we believe they should be expanded and developed further. I am confident this will happen next year,” he told the Russia 24 television channel.
The shift toward digital currencies has been supported by Russian President Vladimir Putin, who earlier this month criticized the U.S. government for undermining the role of the U.S. dollar as the world’s reserve currency. Putin argued that the politicization of the dollar has forced many countries to explore alternative assets, with bitcoin emerging as a prime example. The Russian president emphasized that no country or entity could regulate bitcoin, reinforcing his support for its widespread use.
The Russian government’s endorsement of cryptocurrencies marks a significant pivot in global finance, positioning digital currencies as potential long-term solutions in international payments, particularly as Russia navigates the challenges posed by ongoing sanctions.