Russia Expands Use of Bitcoin in Foreign Trade, Says Finance Minister Hassan Shittu | usagoldmines.com

Russia is ramping up its use of digital financial assets (DFAs), including Bitcoin, in international trade. Finance Minister Anton Siluanov confirmed the development on Dec. 25 in an interview with Russia-24, a state-owned news channel.

Overcoming Sanctions: How Russia Uses Bitcoin in Trade with China

Businesses in Russia are increasingly using Bitcoin and other cryptocurrencies for international trade. This move is part of a broader effort to bypass Western sanctions and navigate challenges in global commerce.

Finance Minister Anton Siluanov confirmed the shift today, citing recent legislative changes that allow the use of cryptocurrencies for foreign payments.

Russia has faced growing difficulties in conducting trade with major partners like China. Many banks are cautious about transactions with Russian entities, fearing potential repercussions from Western regulators.

In response, Russia has embraced cryptocurrencies as an alternative. Siluanov revealed that Russia has passed legislation allowing DFAs and Bitcoin to be used in foreign trade.

He stated that such transactions are underway and that the government plans to scale their implementation further.

The minister emphasized that utilizing DFAs as an alternative to the U.S. dollar in foreign trade is both practical and forward-looking.

He described it as a step toward modernizing global settlement systems.

“This is the future,” Siluanov said, noting that Russia’s experimental legal framework for DFAs, implemented in September 2024, permits these practices.

He further explained:

“We can pay for goods with DFAs. It’s also possible to use Bitcoin mined within Russia under this regime.”

Siluanov highlighted that the regulatory groundwork is complete and that such transactions are already taking place.

He expressed optimism about the next development phase, stating,

“These activities will grow. By next year, it will be a reality.”

Putin Challenges U.S. Dollar Dominance, Sees Bitcoin as an Alternative

Despite embracing Bitcoin for trade, Siluanov has advised caution regarding cryptocurrency investments.

Speaking at an educational event in November, he warned the public against seeing crypto as a source of quick profits.

He said:

“I don’t recommend cryptocurrency as a means of investment. There are safer ways to invest and achieve good returns.”

At the time, Bitcoin had surged past $76,000 and was nearing the $100,000 mark.

Siluanov’s comments reflect the government’s dual approach to crypto: supporting its use in trade while urging caution in personal investments.

Russia has advanced its cryptocurrency framework this year to boost international trade. In August, the country legalized crypto mining, including Bitcoin.

President Vladimir Putin has criticized the U.S. dollar’s dominance in global finance, accusing the U.S. of weaponizing its currency.

Putin suggested that Bitcoin offers an alternative as it operates outside government control.

Despite expanding crypto use, Russia has imposed regional mining restrictions.

Mining will be banned in Dagestan, Chechnya, and parts of Donetsk, Lugansk, Zaporizhia, and Kherson on January 1, 2025.

These bans, effective until March 15, 2031, aim to address power issues linked to subsidized energy in these areas.

Elsewhere, miners must report earnings to the Federal Tax Service and follow energy regulations. While Russia recognized Bitcoin as a financial asset in 2021, its use as a domestic payment method remains prohibited.

The post Russia Expands Use of Bitcoin in Foreign Trade, Says Finance Minister appeared first on Cryptonews.

This articles is written by : Nermeen Nabil Khear Abdelmalak

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