Russia is using cryptocurrency for international payments as the country faces increasing difficulties in accessing foreign currency reserves due to sanctions. Finance Minister Anton Siluanov confirmed that Russian companies are exploring alternative payment systems, including bitcoin, to skirt Western restrictions. The move follows legislative changes that allow crypto use in international transactions and legalizing mining within the country.
Global banks have reduced transactions with Russia, prompting a shift towards alternative payment methods. Bitcoin has seen significant growth due to its mention on Donald Trump’s campaign trail and increasing adoption by El Salvador and the Central African Republic. Despite risks, Russia’s President Vladimir Putin sees bitcoin as an attractive option for foreign currency reserves.
The country’s $300 billion worth of frozen foreign currency reserves are still being debated by G7 countries, with the UK offering a $3 billion loan to Ukraine in October. As international trade becomes increasingly challenging, Russia is exploring new avenues for payment and investment, including cryptocurrency.
Source: https://www.businessinsider.com/russia-economy-cryptocurrency-bitcoin-mining-trade-payments-transactions-sanctions-siluanov-2024-12