Russia Now Using Bitcoin and Other Cryptocurrencies for International Payments to Counter Western Sanctions

Russia has turned to Bitcoin and other cryptocurrencies for international payments, a move aimed at countering the impact of Western sanctions. Finance Minister Anton Siluanov announced the development on Russia 24 television.

“Sanctions have disrupted trade with key partners like China and Turkey, as local banks are hesitant to engage due to potential scrutiny from Western regulators,” Siluanov explained.

Earlier this year, Russia legalized the use of cryptocurrencies in foreign trade and introduced regulations for Bitcoin mining. As a leading Bitcoin miner globally, the country is now utilizing its resources to facilitate these payments.

“Bitcoins mined in Russia are already being used in trade, and this practice will expand further next year,” Siluanov stated, highlighting the potential of digital currencies in reshaping international payments.

President Vladimir Putin has also criticized the U.S. for politicizing the dollar, a move he said is driving countries to explore alternatives. He specifically mentioned Bitcoin, highlighting its decentralized nature and worldwide appeal.

Russia's pro-crypto trade stance contrasts sharply with its recent decision to ban Bitcoin mining in 10 regions within the country until 2031.

Despite the ban, Russia remains a global leader in the cryptocurrency mining industry. By legalizing crypto usage in trade and managing the local impact of mining activities, Russia aims to offset the financial difficulties created by Western sanctions in response to the Ukraine conflict.