Russian companies have started using Bitcoin (CRYPTO: BTC) and other digital currencies for international transactions, said Finance Minister Anton Siluanov on Wednesday.
What Happened: Siluanov revealed that Russian businesses have begun using Bitcoin and other digital currencies for international transactions, reported Reuters. The legislative changes that allowed this move were implemented to counter the impact of Western sanctions on Russia's trade with major partners like China and Turkey.
Siluanov told Russia 24 television channel "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," he continued, expressing his conviction that digital currencies will play a significant role in future international payments.
Why It Matters: Russia has been increasingly embracing cryptocurrencies. This came after President Vladimir Putin, earlier this month, criticized the current U.S. administration for undermining the role of the U.S. dollar as the reserve currency by using it for political purposes. According to Putin, this has compelled many countries to seek alternative assets. He highlighted Bitcoin as an example of such assets, asserting that no global authority could regulate Bitcoin.
Putin also said that cryptocurrencies are becoming the only instrument for international trade in countries under sanctions.
This move comes despite the recent ban on cryptocurrency mining in several regions of Russia. The Russian government announced a six-year ban on cryptocurrency mining in ten regions, effective from Jan. 1, 2025, due to concerns over excessive energy consumption.
Price Action: At the time of writing, Bitcoin was exchanging hands at $$98,305, up 4% in the last 24 hours, according to data from Benzinga Pro.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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