Bitcoin Gains Ground As Russia Approves Its Use In Trade

Anton Siluanov, Russia’s finance minister has shared that local companies are already using bitcoin and other digital money for cross-border transactions.

This announcement came after the government changed the rules to let companies use crypto to work around sanctions, according to reports.

These sanctions were put in place because of Russia’s actions in Ukraine, making it hard for Russia to trade with partners like Turkey and China. Many foreign banks don’t want to work with Russian banks because they fear being checked by Western regulators.

Russia Passed Laws Allowing Crypto For Foreign Trade Earlier This Year

Because of this, cryptocurrencies have become a useful way for Russian companies to trade with other countries. Unlike regular money systems, bitcoin works without middlemen, making it helpful for avoiding sanctions.

Earlier this year, Russia passed laws that allow using crypto for trade with other countries. The country has also been growing its cryptocurrency mining efforts and is now said to be a leader in Bitcoin mining.

Siluanov shared on the Russia 24 TV channel that bitcoins mined in Russia are being used for international trade under a special trial plan.

He also noted that some Russian businesses have already used Bitcoin to make payments to other countries. Siluanov added that Russia plans to grow and improve its digital payment systems even more and he believes this will grow a lot next year. He further said Digital money payments for trade with other countries are the future.

Russian officials have decided which areas of the country will stop cryptocurrency mining starting 1 January 2025. The mining ban will last for six years, ending on 15 March 2031. These steps match the rules signed by President Putin earlier this year to control how energy is used for mining.

Russian President Vladimir Putin criticized The US For Using The Dollar For Politics

At the same time, the United States might change its rules to be friendlier toward cryptocurrencies. US President-elect Donald Trump has said he supports Bitcoin and even called himself “the first Bitcoin President. He has also chosen people for top government jobs who like crypto, showing a positive attitude toward digital currencies.

The interest in Bitcoin is growing because of these changes. After the US elections, Bitcoin’s price went over $100,000 for a short time and is now above $95,000, even after some small price drops.

Earlier this month, Russian President Vladimir Putin said the US government was hurting the U.S. dollar by using it for politics, which is pushing other countries to look for different assets.

Putin identified Bitcoin as an example of these alternatives, saying it can’t be controlled by anyone in the world. This showed that Putin supports the wider use of cryptocurrencies. A Russian lawmaker even suggested adding Bitcoin to Russia’s reserves to reduce risks from global politics.