Russian government officials stated that Russia is actively experimenting with digital financial assets (DFA) in international trade and conducting related work in accordance with the country's relevant laws.
Russia authorizes the use of Bitcoin for international trade
Russian Finance Minister Anton Siluanov discussed alternatives to the US dollar in international trade during an interview with state media (Russia-24) on December 25. Anton Siluanov stated that the Russian government has legislated to authorize the use of digital financial assets (DFA) and Bitcoin (BTC) in foreign trade transactions.
According to previous reports, Russia officially recognized Bitcoin as a digital financial asset with the passage of the (Digital Financial Assets Law) in 2021. This law grants DFA legal status but prohibits its use as a means of payment domestically. According to the country's finance minister, experiments applying DFA and Bitcoin to foreign trade transactions have already begun, and Russia plans to further develop and expand these transactions.
In the interview, Anton Siluanov stated that under the current circumstances, applying DFA to foreign trade as an alternative to the US dollar is "completely understandable" because it makes the application of modern infrastructure possible. He pointed out that this is an innovation in the global settlement system and added:
"This is the trend of the future."
Anton Siluanov stated that, according to the experimental legal system effective from September 2024, Russia can freely use digital financial assets, including Bitcoin, in foreign trade. He emphasized:
"We can use digital financial assets to pay for goods delivery costs. We can also use Bitcoin mined within the Russian Federation to conduct transactions under the experimental legal system."
The Minister of Finance mentioned that Russia had already legalized cryptocurrency mining earlier this year, and the Russian government believes it needs further development and expansion. However, Russia announced a complete ban on cryptocurrency mining in 10 regions, including Dagestan, Ingushetia, and Chechnya, starting from January 1, 2025, for a duration of six years. In addition to the complete ban, Russia will also partially restrict mining operations in three regions of Siberia during the winter energy consumption peak. This series of policies seems primarily aimed at controlling energy consumption.
Anton Siluanov warns of Bitcoin investment risks
However, despite supporting the application of cryptocurrencies in international trade, Anton Siluanov does not encourage the public to participate in cryptocurrency investments. The minister previously stated during a speech at a local educational event on November 6:
"Some people see cryptocurrencies as a tool for quick wealth. I do not recommend using it as an investment method. Absolutely not recommended; there are many other ways today to invest and obtain stable returns."
When Anton Siluanov issued the warning, the price of Bitcoin had already surpassed the historic high of $76,000 and crossed the significant milestone of $100,000 about 30 days later.
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