Russia Endorses Bitcoin for International Settlements as Western Sanctions Linger

On Wednesday, Russian Finance Minister Anton Siluanov revealed that local companies and businesses have begun using crypto assets like Bitcoin (BTC) to facilitate cross-border payments. The announcement came about four months after the government disclosed plans to explore crypto to bypass Western sanctions.

Russia Welcomes Bitcoin

According to Reuters coverage, the Russian Finance Minister stated that the latest move is a deliberate act to circumvent sanctions imposed on the country.

“As part of the experimental regime, it is possible to use bitcoins, which we had mined here in Russia (in foreign trade transactions). [. . .] Such transactions are already occurring. We believe they should be expanded and developed further. I am confident this will happen next year,” the Russian official said.

Russia’s Western sanctions trail back to February 2022, when the country started an all-out war against Ukraine. The Russian government refused to back out from the conflict despite calls for a ceasefire from the European authorities and other countries like the United States. The European Union (EU) imposed several sanctions, including a ban on Russia’s international settlements with other countries.

Russia likely explored BTC and other crypto assets due to their permissionless nature. Ever since the Western sanctions, Russia has shown itself to be pro-crypto. This year alone, the European country has raised over 54,000 BTC from its crypto-mining operations. It has also signed a law legalizing crypto mining activities. Earlier this month, the country’s president, Vladimir Putin, stressed that nobody can ban Bitcoin, showing his support for the apex crypto asset. Since then, government officials have begun exploring the creation of a strategic Bitcoin reserve.

Meanwhile, Russia’s embrace of Bitcoin has faced some setbacks. Yesterday, a local report confirmed that the government will ban crypto mining in ten regions for over six years. These restrictions are due to the frequent electricity outages in the cited areas. The report added that the government will lift the ban based on electricity usage patterns.