Russia legalizes Bitcoin for international payments to counter sanctions, and expanding its use for trade.
Russia’s finance minister announced that the country has changed its legislation to allow companies to use Bitcoin and other digital currencies for international payments. Russia is using this move to counter Western sanctions, according to Reuters.
Russia has been blocked from trading with a number of critical countries including China and Turkey. It looks like local banks are cautious about touching Russia related transactions. They do it to stay out of the way of Western regulators. As a result, Russia is finding ways to engage in international trade using cryptocurrencies.
Russia has also legalized the use of cryptocurrencies in foreign trade this year. Furthermore, the country has also taken the lead to legalize cryptocurrency mining, including Bitcoin. Russia is one of the countries with a good share of the global market of Bitcoin mining.
Russia to Expand Bitcoin Payments for International Trade Next Year
Russia is now implementing a special “experimental regime” for use of Bitcoin in foreign trade, Finance Minister Anton Siluanov said. And he said the use is already occurring. In addition, he says that these transactions will increase in the future. But Siluanov said he has no doubt that next year, such international payments in digital currencies will broaden.
Cryptocurrencies were also in favor of President Vladimir Putin. He said that the U.S. government has abused the U.S. currency by using it for political purposes and made the currency weaker. Putin claimed this has compelled many countries to take a look at alternative assets such as Bitcoin. As no country has control over Bitcoin it could be the way forward for global trade, said Putin.
On the other hand, Russia has also taken steps to regulate cryptocurrency mining. Just recently, the country announced a ban on crypto mining in 10 regions. The duration of this ban will last six years, from 2025 to 2031, and will begin on January 1, 2025. The government said that the ban was needed to ease electricity shortages in some areas of the country. Heavy mining activity makes these regions high energy demands.
Lastly, Russia is taking up Bitcoin as a method of international trade while also dealing with the energy requirements linked to mining. It’s a mixed approach, signalling that the country is becoming increasingly interested in digital currencies but addressing how they could realistically work amid environmental concerns. Russia’s stance on cryptocurrencies is changing, as reported by Reuters, as Russia reacts to the global economic changes.
