Russia actively uses Bitcoin and other digital currencies to counter the impact of Western sanctions on its economy, Reuters reported on December 25.
The report cites Finance Minister Anton Silvanov as recently announcing that Russian companies have begun using cryptocurrencies, particularly domestically mined Bitcoin, for international transactions. He said:
As part of the trial regime, bitcoins we had mined in Russia could be used (in foreign trade transactions). Such transactions are currently being carried out.
In addition to Bitcoin, Blockchain Analytics Inc Chainlysis suggested that stablecoins like USDT and USDC to play a role in Russia International trade. These digital assets are highly liquid, but their centralized control could challenge their wider adoption.
Why did Russia switch to digital currencies?
This strategic move takes place after the western countries imposed sanctions Following Russia's actions in Ukraine, these actions have significantly limited the ability of Russian companies to engage in international trade through conventional banking systems.
As a result, Russia is looking for alternatives where cryptocurrencies have become a prominent solution.
In July, Russian legislators approved The law allows The use of digital currencies in cross-border trade until November, the country's president, Vladimir Putin, succeeded official law Classification of digital currencies as assets for foreign trade purposes. This move was introduced Tax incentives It is exempted from value added tax for digital transactions and mining and sale of digital currencies.
Putin also openly Supports digital currenciesdescribed them as unstoppable tools for increasing efficiency and economic stability.
Silvanov echoed that sentiment, expressing confidence that crypto adoption in international business will grow in the coming year. He said that these measures will continue to expand and give Russian companies more flexibility in navigating the global markets.
He added:
We believe they should be expanded further. I'm sure it will happen next year.”
Despite these advances, crypto adoption in Russia has its limits. For context, the government intends to a Six-year ban on mining in ten regions from January 2025 to address energy concerns.
