The Russian Finance Minister Anton Siluanov recently revealed that domestic firms in Russia are now using Bitcoin and other digital assets for international payments. This comes as a result of legislative adjustments made to counter Western sanctions that have posed challenges to Russia’s trade with key partners like China and Turkey. Siluanov mentioned in a statement to Russia 24 television that the use of Bitcoin in foreign trade transactions is already happening and should be expanded further next year.
President Vladimir Putin has also backed Bitcoin as an alternative to traditional currencies. He expressed concerns about the US administration’s use of the dollar for political leverage, which he believes is diminishing its role as the world’s reserve currency. Putin noted Bitcoin’s resistance to global regulation and endorsed the growing use of cryptocurrencies as many countries, including Russia, explore alternative assets. The recent surge in Bitcoin’s price above $100,000 has fueled excitement globally, leading to an 8% rise in crypto exchange web traffic in Russia.
Russia has authorized the use of cryptocurrencies in foreign trade and is working to legalize mining activities to solidify its position as one of the world’s top Bitcoin mining countries. The country has also intensified its crackdown on illegal crypto-mining operations, with a recent focus on the Irkutsk region where an unregistered operation using over 200 ASIC rigs was shut down. Additionally, Russia has extended its winter crypto-mining ban to 2031 in regions like Dagestan, Chechnya, and Siberia, starting January 2025.
The ban is aimed at addressing the imbalances in electricity payments and grid strain caused by crypto mining, which consumes 1.5% of the national power. Despite these regulations and crackdowns, Russia has seen a significant increase in crypto exchange web traffic, with Russian users accounting for a large portion of the total traffic to the top 20 exchanges globally. This growth is also attributed to regulatory changes and global trends that have contributed to the growing interest in cryptocurrencies in Russia and around the world.
Overall, Russia’s embrace of Bitcoin and other digital assets for international payments reflects a shift towards alternative financial instruments in response to Western sanctions and global economic trends. With President Putin’s endorsement and regulatory changes in place, the use of cryptocurrencies is expected to continue growing in Russia, further solidifying the country’s position in the world of Bitcoin mining and digital asset adoption.
