ISLAMABAD: Russian businesses have started using bitcoin and other digital currencies in global payments following legislative revisions that allowed such use in order to circumvent Western sanctions, Finance Minister Anton Siluanov said on Wednesday.
Because local banks are very cautious with Russia-related transactions to avoid scrutiny from Western regulators, sanctions have made it more difficult for Russia to conduct business with its major partners, like China and Turkey, according to Reuters.
Bitcoin mining
This year, Russia permitted the use of cryptocurrencies in foreign trade and has taken steps to make it legal to mine cryptocurrencies, including bitcoin. Russia is one of the global leaders in bitcoin mining.
“As part of the experimental regime, it is possible to use bitcoins, which we had mined here in Russia (in foreign trade transactions),” Siluanov told Russia 24 television channel.
“Such transactions are already occurring. We believe they should be expanded and developed further. I am confident this will happen next year,” he said, adding that international payments in digital currencies represent the future.
As part of the experimental regime, it is possible to use bitcoins, which we had mined here in Russia (in foreign trade transactions).” — Anton Siluanov, finance minister of Russia.
Earlier this month, President Vladimir Putin said that the current US administration was undermining the role of the US dollar as the reserve currency by using it for political purposes, forcing many countries to turn to alternative assets.
He singled out bitcoin as an example of such assets, saying that no-one in the world could regulate bitcoin. Putin’s remarks indicated that the Russian leader backs the extensive use of cryptocurrencies.
