Reuters said, in a report, that Russian companies have begun using Bitcoin and other digital currencies in international payments, after legislative amendments aimed at mitigating the impact of Western sanctions.
Russian Finance Minister Anton Siluanov confirmed that this step represents an important development in light of increasing economic pressures.
Facing the complications of Western sanctions that affected Russian trade with major partners such as China and Turkey, Russia allowed the use of digital currencies in foreign trade this year, according to Reuters.
It has also taken steps to make mining digital currencies, including Bitcoin, legal, as Russia is one of the world’s leading countries in Bitcoin mining.
Siluanov said, during statements to the Russia 24 channel, “Within the framework of the experimental system, it has become possible to use Bitcoin, which we mined here in Russia, in foreign commercial transactions.”
He added, “Transactions of this kind are already occurring, and we believe that they should be expanded and developed further. I am confident that this trend will witness significant growth next year.”
The future of digital payment in Russia
The Minister of Finance indicated that international payments using digital currencies represent the future, stressing that Russia intends to strengthen this trend in the coming years.
In a related context, Russian President Vladimir Putin said this month that the current US administration is undermining the role of the US dollar as a global reserve currency by using it for political purposes.
Putin added, “Many countries have begun to resort to alternative assets, and Bitcoin represents one of these options.”
The Russian President stressed that Bitcoin, being not subject to global regulation, represents an attractive option in light of the current economic conditions.
Sanctions on the Russian economy
Sanctions on Russia have complicated business operations with key partners, prompting local banks to be cautious in Russia-related transactions, to avoid scrutiny from Western regulators.
This comes at a time when Russia seeks to strengthen its economic independence from the global financial system dominated by the United States.
Digital payments are expected to see significant growth in Russia’s international trade over the next year, with the legal and regulatory infrastructure strengthened to support this transformation.
