Bitcoin News: Russia Initiated Using BTC In International Trade

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  • Finance Minister Anton Siluanov confirms regulatory changes for cross-border crypto transactions.
  • Putin recognizes Bitcoin as a decentralized asset outside central control.
  • BRICS nations, including Russia, are integrating Bitcoin to reduce dependence on the U.S. dollar.

A major Bitcoin news is making waves in the crypto market. Recently, Russia took a significant turn to Bitcoin and other cryptocurrencies. This move was initiated to facilitate international trade to sidestep Western sanctions.

Finance Minister Anton Siluanov recently confirmed this shift. It happened as new legislative reforms enacted this year allowed using cryptos in cross-border transactions.

This development comes at a time when Russia is facing mounting challenges in maintaining trade relationships. Many banks are now hesitant to engage with Russian businesses. That’s due to the risk of facing sanctions or other penalties from Western authorities.

This move to embrace crypto aligns with recent predictions made by investment firm VanEck. This highlighted the growing role of cryptos in global trade amidst rising geopolitical tensions.

Why did Russia embrace Bitcoin for international trade?

Based on the Bitcoin news, Russia has turned to cryptocurrencies to alleviate the economic strain. That was caused by strict Western sanctions imposed in response to the ongoing war in Ukraine.

Before the conflict, the country had been on track to ban Bitcoin and other digital currencies. However, as the impact of the sanctions began to be felt.

Instead of banning the king-coin, Russia reversed its stance. It embraced crypto assets as a means of sidestepping these financial restrictions.

In response to this shift, the Russian government has adjusted its legal framework to allow the use of Bitcoin crypto for international transactions. Even Finance Minister Anton Siluanov confirmed that these regulatory changes have been crucial.

Siluanov also revealed that some crypto transactions Russia carried out were funded by the Bitcoin mined within the country. This year, Russia officially authorized using cryptos in foreign trade and has also taken steps to legalize cryptocurrency mining.

Moreover, Finance Minister Anton Siluanov is optimistic that crypto-based transactions represent the future of digital payments. His confidence comes as Russia increasingly relies on cryptocurrencies to navigate economic challenges the West’s sanctions pose. pose

Senior Russian officials, who once opposed it, are now shifting their perspectives on Bitcoin. Recently, Putin acknowledged Bitcoin as an asset that operates outside the control of any central authority. By saying so, he underscored its potential in bypassing traditional financial systems.

Adopting Bitcoin Aligns with What VanEck Predicted a Few Days Ago

In a previous report, VanEck projected that Bitcoin’s market value could surpass $42 Trillion. That could position it as a dominant force within the global financial system.

Mathew Sigel is VanEck’s head of research. He suggested that Bitcoin crypto could emerge as the primary currency for international trade settlements. This move has offered a viable alternative to the U.S. dollar.

This could be particularly advantageous for countries facing U.S. sanctions, such as those within the BRICS alliance. The report highlighted that they are already working to reduce their reliance on the dollar and circumvent U.S. financial influence.

Since Russia is a key member of the BRICS alliance, the report’s predictions align closely with Russia’s recent Bitcoin news. It seeks alternatives to the Western-dominated financial system.

Moreover, VanEck noted that the adoption of Bitcoin will not be limited to BRICS countries like Russia. Other nations and cities worldwide are accelerating their efforts to integrate Bitcoin into their economic strategies.

This trend highlighted Bitcoin’s emerging role as a reserve asset and a tool for financial innovation in the global economy.

Latest Regulation in Russia on Bitcoin Mining

Russia has announced a ban on Bitcoin and other cryptocurrency mining in several key regions in a new development. That is set to take effect from January 1, 2025, until March 15, 2031. The affected areas include Dagestan, Chechnya, and parts of Donetsk, Lugansk, Zaporizhia, and Kherson.

The primary goal of this ban is to address electricity imbalances caused by heavily subsidized energy costs in these regions. The energy-intensive nature of crypto mining has worsened it.

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tweet post | source: x

While cryptocurrency mining will be restricted in these areas, the practice remains legal across most of Russia.

However, miners must report their earnings to the Federal Tax Service and adhere to strict energy consumption regulations. This includes limits on how much power can be used for mining activities.

Russia officially recognized Bitcoin as a financial asset in 2021. However, the country has yet to permit its use as a domestic payment method.

Instead, the government continued to restrict Bitcoin transactions within Russia. At the same time, it allowed Bitcoin to be used in international trade and as part of broader financial strategies.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.

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