Russian Companies Begin Using Bitcoin in International Payments Amid Sanctions
Russian companies have started using bitcoin and other digital currencies in international payments following changes in legislation that allowed such use. The move is seen as a way to counter Western sanctions, which have complicated trade with major partners such as China and Turkey.
Local banks have been cautious with Russia-related transactions to avoid scrutiny from Western regulators, making it difficult for Russia to conduct international trade. However, this year, Russia permitted the use of cryptocurrencies in foreign trade and took steps to make it legal to mine them.
“We believe [digital currency transactions] should be expanded and developed further,” said Finance Minister Anton Siluanov. “I am confident this will happen next year.”
Russia is one of the global leaders in bitcoin mining, and international payments in digital currencies are seen as the future. Earlier this month, President Vladimir Putin expressed support for the extensive use of cryptocurrencies, citing the example of bitcoin, which he said no one in the world could regulate.
Putin’s remarks indicated that the Russian leader backs the widespread adoption of cryptocurrencies, which he sees as an alternative to the US dollar.