Bitcoin, a strategic weapon for Russia

Under an avalanche of Western sanctions, Russia is turning to an unexpected ally: Bitcoin. This flagship cryptocurrency, which Moscow intends to exploit, is becoming a way to circumvent the dollar and financial restrictions.

Russia is turning to an unexpected ally in the face of Western sanctions: Bitcoin. The flagship cryptocurrency is emerging as a way for Moscow to get around the dollar and financial restrictions. With optimal conditions for bitcoin mining, the country is aiming to become a major player in the sector. But this strategic move raises crucial questions about its economic and legal implications.

Bitcoin, a strategic weapon for Russia

Since September 2024, economically battered Russia has been experimenting with a legal regime that permits the use of digital financial assets (DFA) in international trade. According to Minister of Finance Anton Siluanov, these modern instruments, including bitcoin, could effectively serve as a substitute for the dollar in transactions.

"We can pay for the delivery of goods with digital financial assets. It is also possible with bitcoin, which we mine here," he stated on the Rossiya-24 channel.

Practical examples of this approach offer several benefits:

The country is not stopping at mining: it plans to develop a robust infrastructure to scale up these practices by 2025. But be warned, despite a booming crypto market, Siluanov cautions citizens against the risks of crypto speculation, reminding them that bitcoin is not a get-rich-quick scheme.

Crypto trading: a tale of opportunities and caution

While Russia may be legalizing bitcoin mining, it remains wary of crypto trading. Last November, Siluanov advised against investing in bitcoin, especially as it was nearing historic highs of over $76,000. His warning was clear:

"Some people view cryptos as a source of quick gains. It is not an investment solution."

The challenge for Moscow is evident: to harness BTC as an economic lever without encouraging speculative fervor. The 2021 law legalizes DFAs but prohibits their use as a form of payment within the country.

This paradox reflects a cautious approach to managing a technology that has the potential to both boost and destabilize the economy.

Moreover, energy-rich and ambitious Russia sees bitcoin as an economic and political weapon. By inviting the BRICS to capitalize on these optimal conditions, it aims to build a new multipolar economy, where BTC mining and cryptocurrencies fundamentally shift the landscape.

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La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose