Russian companies have begun using bitcoin and other cryptocurrencies for international payments, after legislative changes allowed them to do so to counter Western sanctions, Russian Finance Minister Anton Siluanov said Wednesday.
Sanctions have hit Russian trade with key partners such as China and Turkey, with local banks becoming increasingly cautious about Russia-related transactions to avoid scrutiny from Western regulators.
This year, Russia allowed the use of cryptocurrencies in foreign trade, and took steps to legalize cryptocurrency mining, including Bitcoin. Russia is among the world leaders in Bitcoin mining.
“Within the framework of the pilot scheme, Bitcoin, which we mined here in Russia, can be used in international trade transactions,” Siluanov told Russia 24.
"Such transactions are already taking place. We believe that they should be expanded and developed further. I am confident that this will happen next year," he added, noting that international payments in digital currencies represent the future.
Earlier this month, President Vladimir Putin said the current US administration was weakening the US dollar’s role as a reserve currency by using it for political purposes, forcing many countries to turn to alternative assets.
Putin pointed to Bitcoin as an example of such assets, stressing that no one in the world can regulate Bitcoin. Putin’s statements show his support for the widespread use of digital currencies.
