To cope with Western sanctions, Russia actively mines and uses Bitcoin in trade with major partners.
Russian Finance Minister Anton Siluanov said on December 25 that Russian businesses have started using Bitcoin and other cryptocurrencies for international payments, after Russia amended its laws to allow the use of cryptocurrencies to counter Western sanctions.
"Using Bitcoin in commerce is part of our testing process. These Bitcoins are mined in Russia. We believe that this will be expanded further," Mr. Siluanov said on Russia 24 TV channel. He affirmed that using digital currencies is the future of international payments.
Western sanctions have made it difficult for Russia to trade with major trading partners such as China and Türkiye. After the war in Ukraine, a number of Russian banks were removed from the international payment system SWIFT. Last month, the US announced additional sanctions against Gazprombank - the last major Russian financial institution not yet subject to restrictions.
Banks in other countries are therefore very cautious with transactions involving Russia, to avoid being scrutinized by Western authorities. This has led Russia to allow the use of cryptocurrencies in international trade this year. They are also gradually legalizing the mining of cryptocurrencies, including Bitcoin. Russia is currently one of the world's leading countries in Bitcoin mining.
Earlier this month, Russian President Vladimir Putin said the US government was undermining the dollar’s reserve currency power by using it for political purposes, forcing many countries to look for alternative instruments. Russia and Iran have now abandoned the dollar in bilateral trade, using only their own currencies.
Mr. Putin also used the example of Bitcoin, asserting that no one in the world can control this digital currency. The above statements show that Russia will increase the use of digital currency even more in the future.