Russia’s Finance Minister Anton Siluanov sheds light on increased Bitcoin (BTC) use for international trades. This happened after the state’s law agencies tweaked crypto regulations starting this year to support cross-border digital assets transactions.
Russia turned to one of the top Bitcoin supporters following its conflict with Ukraine. Russia’s invasion of Ukraine resulted in multiple sanctions on the state by U.S. authorities and its allies that limited the country’s access to international trade.
Russia allows Bitcoin mining in specific regimes
Apart from designing crypto-friendly legislation to bypass U.S. sanctions, Russia also accelerated its efforts to legalize Bitcoin mining. While speaking on the Russia 24 television channel about the extended BTC use, Siluanove noted in a statement on 25 Dec;
As part of the experimental regime, it is possible to use bitcoins, which we had mined here in Russia (in foreign trade transactions). Such transactThese sanctions, imposed after Russia’s military actions in Ukraine, have significantly limited the country’s access to traditional financial systems. As a result, cryptocurrencies have emerged as an alternative for conducting international trade without reliance on the U.S. dollar or SWIFT-based payment systems.
Due to fears of regulatory backlash from the West, local banks opt for a cautious approach. On the other side, these intense sanctions by global authorities disrupted Russia’s trade with its major partners, such as Turkey and China.
The Finance minister noted that Bitcoin, specially mined within the country, appeared as an alternative for Russian companies to utilize and bypass restrictions. Bitcoin’s decentralized nature positioned it as an effective tool to combat such constraints.
Russia’s president favors digital assets growth
Russian President Vladimir Putin also endorsed using digital assets as an effective financial tool. Earlier this month, Putin asserted that the U.S. administration’s move to use dollar currency for political leverage has diminished its role as the world’s reserve currency. This led many jurisdictions to explore alternatives. Putin pointed out Bitcoin as an option while addressing its regulatory resistance on a global scale.
MegaFon, the third-largest telecom operator in Russia, reported that internet traffic rose on crypto exchanges’ websites. In other words, global crypto traffic on exchanges surged to 10% in Nov. compared to 8% in Oct., with Russian users representing 27%-30% of this growth.
