Bitcoin’s role in Russia as it attempts to evade sanctions
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Russia has started the use of Bitcoin for cross-border payments Putin sees Bitcoin as the perfect tool to avoid sanctions since it cannot be controlled by countries Over the past year, the debate over Bitcoin [BTC] has shifted worldwide. More than ever, Bitcoin is at the end of strong favorability from governments, politicians, and traditional financial institutions. This newfound favorability has left countries such as the United States, that have previous opposed crypto, to elect a pro-crypto president. In fact, such is President Trump’s favoritism for crypto, that he is also supporting a proposal to establish a strategic Bitcoin reserve. Additionally, cryptocurrencies have also become an accepted mode of payments in countries such as UAE. What about Russia though? Well, while Russia has banned crypto-mining in certain regions, it also seems to be supporting the use of Bitcoin for some economic activities. Bitcoin’s usage in foreign trade According to Russian Finance Minister Anton Siluanov, Russia has started using Bitcoin and other cryptocurrencies for international trade. This, after legislative changes designed to avoid heavy sanctions put on the economy by western countries. Earlier this year, Russia legalized the use of cryptocurrencies in international trade and formalized mining operations in the country. As one of the major Bitcoin miners, Russia sees digital currencies as a practical solution to economic challenges facing the country. Russia adopts Bitcoin to evade sanctions The new legislation allowing the use of Bitcoin for cross-border transactions has become a necessity for Russia amidst heavy sanctions from Western countries. According to Siluanov, such transactions are occurring, and he expects them to be expanded and developed further next year. Since 2014, when Russia invaded Ukraine and took Crimea, it has faced massive sanctions. These economic restrictions escalated after the full-scale war on Ukraine in 2022, making Russia the most sanctioned…
Filed under: News - @ December 28, 2024 5:06 am