As of December 25, 2024, Russian Finance Minister Anton Siluanov announced that Russia has begun utilizing Bitcoin $BTC and other digital currencies for international transactions. This initiative aims to circumvent Western sanctions and is supported by recent legislative changes that legalized cryptocurrency mining and authorized the use of digital financial assets (DFAs) in foreign trade.
Siluanov emphasized that Russia is free to use digital financial assets, including Bitcoin, in foreign trade. He noted that such transactions have already commenced and are expected to expand. The minister highlighted that Russia can pay for goods delivery with DFAs, including Bitcoin $BTC mined within the country, under the experimental legal regime established in September 2024.
President Vladimir Putin has also expressed skepticism about the necessity of holding state reserves in foreign currencies, citing the potential for political seizure, as seen with the freezing of $300 billion of Russian reserves by Western countries in 2022. He advocates for domestic investment of such reserves in areas like infrastructure, logistics, science, and education, considering them more reliable. Putin criticized the current U.S. administration for undermining the U.S. dollar's role as a global reserve currency by leveraging it for political purposes, which has led many countries to consider alternative assets, such as cryptocurrencies. He highlighted Bitcoin $BTC as an example of an alternative asset, emphasizing that no one can prohibit it.
These developments indicate a strategic shift in Russia's approach to international trade and finance, leveraging digital currencies to mitigate the impact of Western sanctions and reduce reliance on traditional fiat currencies.