Russia Using Bitcoin for International Trade, Finance Minister Confirms: Report

In a surprising move, Russian companies have reportedly started using Bitcoin (which recently touched its all-time high of $108,319.87) and other digital currencies for ‘international’ or ‘foreign’ payments following significant changes in legislation, according to Finance Minister Anton Siluanov. As per a Reuters report, Siluanov clarifies that these new regulations, which allow the use of digital currencies in foreign trade, will help Russia circumvent the economic effects of Western sanctions. These sanctions have made it increasingly difficult for Russia to conduct business with major partners such as China and Turkey, as local banks exercise caution with transactions involving Russia to avoid Western regulatory scrutiny. Interestingly, during an interview with Russia 24 TV Channel, Siluanov noted that these new rules are already being put into action.

Earlier this year, The Kremlin legalized the use of cryptocurrencies for international trade and has taken steps to ensure the legality of cryptocurrency mining, including Bitcoin. The country has become one of the world leaders in Bitcoin mining. Reports also revealed that some of the crypto transactions that have already occurred involved Bitcoin mining within Russia. “Such transactions are already occurring. We believe they should be expanded and developed further. I am confident this will happen next year,” Siluanov told Russia 24 TV Channel, expressing optimism about the future of digital currency transactions in the country.

Russia Using Bitcoin For Foreign Trade – Why?

However, just a few years ago, Russia had planned to ban Bitcoin and other cryptocurrencies. Despite that, the impact of Western sanctions on the Russian economy led to a change in strategy. This becomes more interesting as currently, the price of Bitcoin stands at $98,350.00, with a 24-hour trading volume of $38.37 billion, according to recent market data. Some analysts attribute this rise to U.S. President-elect Donald Trump’s victory and his support for digital currencies during the campaign.

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Speaking about the latest tech policy updates in Russia, the country has now threatened to ban Meta’s instant messaging app WhatsApp in 2025 if the platform refuses to share user information with Russia’s security services and does not comply with the country’s laws. Russian senator Artyom Sheykin shared this information with the state news agency RIA Novosti on Monday. Notably, Facebook, Instagram, and X have been banned in Russia since 2022.

Moving back to the recent development, the change in Russia’s approach comes amid a broader geopolitical context. President Vladimir Putin, earlier this month, criticized the U.S. administration for undermining the role of the U.S. dollar as the world’s reserve currency. As per the report, Putin argued that by using the dollar for political purposes, the U.S. is encouraging many countries to seek alternative assets. He pointed to Bitcoin as one such alternative, emphasizing that its decentralized nature means it cannot be regulated by any one country.