Russia is intensifying its use of digital financial assets (DFAs), including Bitcoin, to facilitate international trade. Finance Minister Anton Siluanov announced this development during an interview on Dec. 25 with Russia-24, a state-owned news channel.
Overcoming Sanctions: Leveraging Bitcoin in Trade with China Russian businesses are increasingly turning to Bitcoin and other cryptocurrencies for international transactions. This initiative is part of a broader strategy to circumvent Western sanctions and address challenges in global trade.
Finance Minister Anton Siluanov highlighted this shift, citing recent legislative measures that authorize the use of cryptocurrencies for foreign payments.
Russia has encountered growing difficulties in trading with major partners like China, as many banks are hesitant to engage with Russian entities due to potential repercussions from Western regulators. In response, the Russian government has adopted cryptocurrencies as an alternative. According to Siluanov, legislation enabling the use of DFAs and Bitcoin in foreign trade has already been enacted.
Siluanov confirmed that such transactions are currently underway and expressed the government’s intention to expand their application further. He emphasized that employing DFAs as a substitute for the U.S. dollar in foreign trade is both innovative and practical, describing it as a step toward modernizing global settlement systems.
“This is the future,” Siluanov asserted, referencing the experimental legal framework for DFAs implemented in September 2024. This framework allows payments for goods using DFAs, including Bitcoin mined within Russia under the new regime.
Siluanov also pointed out that the regulatory groundwork has been completed, paving the way for these transactions to flourish. He expressed optimism about the next phase of development, stating, “These activities will grow. By next year, it will be a reality.”
Challenging U.S. Dollar Dominance: Putin’s Perspective on Bitcoin While embracing Bitcoin for trade purposes, Siluanov advised caution regarding its use as an investment vehicle. Speaking at an educational event in November, he warned against viewing cryptocurrencies as a means of achieving quick profits.
“I don’t recommend cryptocurrency as a means of investment. There are safer ways to invest and achieve good returns,” he said. At the time, Bitcoin had surged past $76,000 and was approaching the $100,000 mark.
Siluanov’s comments reflect the government’s dual approach to cryptocurrencies: supporting their use in trade while encouraging caution in personal investments.
Russia has significantly advanced its cryptocurrency regulatory framework this year to enhance international trade. In August, the country legalized cryptocurrency mining, including Bitcoin. President Vladimir Putin has criticized the dominance of the U.S. dollar in global finance, accusing the United States of weaponizing its currency. Putin has suggested that Bitcoin offers an alternative as it operates outside government control.
Despite the expanding use of cryptocurrencies, Russia has imposed regional restrictions on mining. Effective January 1, 2025, mining will be prohibited in regions such as Dagestan, Chechnya, and parts of Donetsk, Lugansk, Zaporizhia, and Kherson. These bans, set to last until March 15, 2031, aim to address energy-related issues stemming from subsidized power in these areas.
Elsewhere, miners are required to report their earnings to the Federal Tax Service and adhere to energy regulations. Although Russia recognized Bitcoin as a financial asset in 2021, its use as a domestic payment method remains prohibited.
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