Russian companies have started using bitcoin and other digital currencies for international payments as a way to counter Western sanctions, according to Finance Minister Anton Siluanov. The move comes after legislative changes allowed for the use of cryptocurrencies in foreign trade and steps were taken to make cryptocurrency mining legal.
Russia has been struggling with international trade due to Western sanctions, with local banks being cautious about transactions to avoid scrutiny from regulators. However, with the use of cryptocurrencies, Russian companies can bypass these restrictions and make payments more easily.
Siluanov said that transactions using bitcoin are already occurring and he believes they should be expanded and developed further. He also predicted that international payments in digital currencies will become more widespread in the future.
The Russian government has been supportive of the use of cryptocurrencies, with President Vladimir Putin recently stating that the US is undermining the role of the US dollar as the reserve currency by using it for political purposes. Putin singled out bitcoin as an example of an alternative asset, saying that no one in the world can regulate it.