Russia uses Bitcoin in foreign trade to bypass sanctions, says FM

Russia uses Bitcoin in foreign trade to bypass Western sanctions — Russian Finance Minister Anton Siluanov. Photo: iKurd.net/credit/kremlin.ru/Tugay Kocaturk/pexels

MOSCOW,— Russian companies have started using Bitcoin BTC and other cryptocurrencies for international payments, a move that comes after recent legislative changes designed to bypass Western sanctions, Russian Finance Minister Anton Siluanov said on Wednesday, Reuters reported.

The sanctions imposed by the West have disrupted trade between Russia and key partners, including China and Turkey. Russian banks, wary of attracting scrutiny from Western regulators, have been reluctant to engage in transactions tied to Russia.

To mitigate these challenges, Russia has introduced laws permitting the use of digital currencies in foreign trade and made efforts to regulate the legal mining of cryptocurrencies like Bitcoin. Russia has emerged as a leading player in global Bitcoin mining.

“As part of a trial program, it’s now possible to use Bitcoin mined in Russia for foreign trade transactions,” Siluanov said in an interview with Russia 24 television. “These transactions are already taking place, and we expect this practice to grow and expand in the coming year,” he added, emphasizing that digital currencies are the future of international payments.

Earlier this month, Russian President Vladimir Putin criticized the current U.S. administration, claiming it was weakening the U.S. dollar’s status as the world’s primary reserve currency by using it as a political tool.

Putin pointed to Bitcoin as an example of an asset that is not subject to regulation by any government, suggesting that this decentralized cryptocurrency offers an alternative for countries seeking to move away from the dollar.

Experts argue that Bitcoin (BTC) stands out as a truly decentralized, independent digital currency. Often referred to as “digital gold,” Bitcoin is seen as a secure store of value, not controlled by any government or corporation. This contrasts with many other digital currencies, or “altcoins,” which face skepticism due to their centralized nature and association with specific companies.

Bitcoin’s rising influence was underscored earlier in December 2024, when the cryptocurrency surpassed $100,000 for the first time, a milestone that even attracted praise from some of its former critics.

In the U.S., President-elect Donald Trump has expressed strong support for Bitcoin, declaring his intent to make the country the “crypto capital of the world” and suggesting that the U.S. government could eventually hold Bitcoin in its reserves.

Globally, Bitcoin’s role continues to expand, with countries like El Salvador officially adopting it as legal tender in September 2021, followed by the Central African Republic in 2022.

According to experts and government officials, Russia’s move to embrace cryptocurrencies in international trade reflects a broader shift towards alternatives to traditional financial systems, with Bitcoin emerging as a key player on the global stage.

(With files from Reuters | Agencies)