Russia Finance Minister Confirms Use of Bitcoin for International Trade

Businesses in Russia are utilizing Bitcoin and other crypto assets in international trade as part of a broader effort to bypass Western sanctions. Finance Minister Anton Siluanov confirmed this development in a statement today. Siluanov noted that legislative changes this year have enabled the use of cryptocurrencies for foreign payments. The move comes as Russia faces increasing difficulties in conducting trade with major partners like China due to heightened caution from banks. These institutions are wary of engaging in transactions with Russia, fearing potential repercussions from Western regulatory bodies. Legislative Changes Open Path for Crypto Usage This year, Russia passed laws allowing the use of cryptocurrencies in international trade. In August, the country legitimized the mining of crypto assets, including Bitcoin. Russia has become one of the world’s leading Bitcoin mining nations, giving it a strong foundation for this new phase of financial operations. Siluanov emphasized that the nation has already integrated Bitcoin, along with other crypto assets, into some foreign trade transactions under an experimental regime. "It is possible to use BTC, which we had mined here in Russia," he explained during a broadcast today. Furthermore, Siluanov expressed confidence that using cryptocurrencies in international trade will continue to expand. "We think they should be further expanded and developed. I am confident this will take place next year," he stated. Earlier, President Vladimir Putin criticized the U.S. government for weakening the U.S. dollar's status as the global reserve currency by using it for political leverage.  He argued that this has pushed numerous nations to explore alternative assets. He specifically highlighted Bitcoin as an example, noting that it remains beyond the control of any government.  Latest Regulation on Bitcoin Mining in Russia In a related development, Russia has outlawed Bitcoin and cryptocurrency mining in key regions, effective January 1, 2025, until March 15, 2031. Affected areas include Dagestan, Chechnya, and parts of Donetsk, Lugansk, Zaporizhia, and Kherson.  The move aims to address electricity imbalances caused by subsidized energy costs in these regions. While crypto mining remains legal in Russia, miners must report earnings to the Federal Tax Service, with limits on energy use.