Russia Expands International Trade Using Bitcoin
On December 25 local time, Russian Finance Minister Siluanov stated that Russian companies have experimentally used Bitcoin and other digital currencies for international payments. This move marks a significant shift in Russia's cryptocurrency policy, aiming to bypass Western sanctions restricting trade.
Policy Shift: From Restriction to Openness
In recent years, Russia's attitude towards cryptocurrency has undergone significant changes. In 2022, Russia proposed a total ban on cryptocurrency, believing it could threaten the stability of financial markets. However, facing escalating Western sanctions and pressures on the financial system, Russia relaxed its restrictions on cryptocurrencies in 2023, legalizing cryptocurrency mining and allowing the use of digital currencies in international trade.
Siluanov stated, "Under the experimental regulatory framework, we can conduct foreign trade transactions using Bitcoin mined in Russia." He revealed that such transactions have already begun and sees vast growth potential in the future.
Sanction Response: Digital Currency as a New Choice
Western sanctions have complicated transactions between Russia and its main trading partners, with many banks cautiously dealing with transactions involving Russia to avoid scrutiny by regulatory agencies. Against this backdrop, Russia is turning to digital currencies as a payment means to resolve the obstacles faced by traditional payment channels.
Siluanov emphasized, "Using digital currencies for international payments represents the direction of future development." He anticipates significant progress by 2024 as the application scope of digital currencies expands further.
Putin and Trump: Focus on Global Digital Currency
Earlier this month, Russian President Putin also commented on digital currencies, criticizing the U.S. for using the dollar for political purposes, weakening its status as a reserve currency. He noted that many countries are seeking alternative assets, with Bitcoin becoming a significant choice due to its decentralized nature. Putin stated, "No country can regulate Bitcoin."
Meanwhile, U.S. President-elect Trump promised during his campaign to introduce policies supporting cryptocurrency development and suggested the possibility of establishing a "Bitcoin Strategic Reserve." His election victory has propelled a new bull market for Bitcoin, with its price reaching historic highs, nearing $110,000 at one point.
Bright Future for Global Digital Currency
Cryptocurrencies were once considered high-risk assets, but recently they have gained significant mainstream appeal. With Wall Street institutions' growing attention and U.S. regulatory approval of cryptocurrency funds, their application fields continue to expand. Russia’s exploration of digital currencies in international trade further reflects the global development trend of this phenomenon.
Conclusion: Digital Payments Become Global Focus
Russia's use of Bitcoin for international trade is not only a response to sanctions but also provides a new model for the application of digital currencies in global trade. With leaders like Putin and Trump advocating, digital currencies are reshaping the global financial landscape. In the future, as more countries join this realm, the potential of digital payments will be further explored.
