Russia Expands Use of Bitcoin in Trade

In response to Western sanctions, Russia is increasingly utilizing Bitcoin and other cryptocurrencies for international trade, as confirmed by Finance Minister Anton Siluanov. The Russian government has modified its legislation to allow the use of digital currencies in foreign transactions, with ongoing experiments already in place using locally mined Bitcoin. President Vladimir Putin has endorsed Bitcoin as an unregulated asset and criticized the U.S. for politicizing the dollar, suggesting a shift towards alternative financial systems. The new legal framework also exempts crypto mining from value-added tax, although restrictions on mining are set to be implemented in certain regions starting January 2025 due to energy shortages. Siluanov expressed confidence in the expansion of crypto transactions in international trade over the coming year, reflecting a significant policy shift amid ongoing economic pressures. This development aligns with a broader trend where nations explore cryptocurrencies as a means to circumvent traditional banking limitations imposed by foreign sanctions.