RUSSIA STARTS USING BITCOIN FOR INTERNATIONAL PAYMENTS

Fri 27 December 2024:

Russian companies have started using Bitcoin and other digital assets in international payments, the Russian finance minister said on Wednesday.

In a statement to the Russian state channel Rossiya-24, Anton Siluanov said that Bitcoins mined in Russia can be used in the experimental process for international payments, and such payments have begun.

Siluanov noted that this payment method should be developed and expanded.

While there are no restrictions on the purchase of cryptocurrencies in Russia, the use of these cryptocurrencies as a form of payment within the country is prohibited.

With the decree signed by Russian President Vladimir Putin on Aug. 8, the experimental use of cryptocurrencies in international payments and Forex transactions was legalized.

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The Russian government has increasingly turned to Bitcoin as a tool for international payments, especially amid growing sanctions and financial restrictions from Western nations. With access to traditional banking systems and the SWIFT network curtailed, Russia sees cryptocurrencies as a way to bypass these barriers and facilitate trade.

Bitcoin’s decentralized nature makes it appealing because transactions occur without reliance on centralized institutions, making it harder for other nations to monitor or block financial activities.

Russia has reportedly been exploring the use of Bitcoin and other digital assets to settle transactions with countries willing to engage outside traditional financial systems, such as Iran or China. This shift is part of a broader strategy to reduce dependence on the US dollar and minimize the impact of sanctions on the Russian economy.

While this approach offers advantages, such as faster transactions and reduced reliance on foreign exchange markets, it also poses risks. Cryptocurrencies are highly volatile, and there are concerns about transparency and regulatory scrutiny. Nevertheless, Russia’s pivot to Bitcoin underscores the growing role of digital currencies in geopolitics and the global economy.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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