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Russia allows Bitcoin in foreign trade amid legal framework

Russia allows Bitcoin in foreign trade amid legal framework

GrafaGrafa2024/12/26 09:10
By:Mahathir Bayena

Russia has implemented legal tools to facilitate the use of digital financial assets (DFAs), including Bitcoin (CRYPTO:BTC), in foreign trade transactions, according to Finance Minister Anton Siluanov.

In an interview with Russia-24 on December 25, Siluanov confirmed that the country has been using DFAs as an alternative to the US dollar in international trade.

He emphasised that these transactions align with the nation’s experimental legal regime, which became effective in September 2024.

"We can pay for the delivery of goods with digital financial assets. It is also possible to use Bitcoin, which we mined here in the Russian Federation, within the experimental regime," Siluanov stated.

"That is the future," he added, describing the shift as part of the modernisation of global settlement systems.

The use of Bitcoin and DFAs in trade transactions has been ongoing, and Siluanov expressed optimism about scaling these efforts in 2025.

"We say that they need to be developed and expanded, and I am sure that next year, it will be a reality," he noted.

Russia legalised Bitcoin mining earlier in 2024, providing the infrastructure to support its use in foreign trade.

However, while DFAs were granted legal status under the 2021 law "On Digital Financial Assets," their use as a domestic payment method remains prohibited.

Despite promoting Bitcoin for trade, Siluanov has cautioned against speculative investments in cryptocurrencies.

"Some people see cryptocurrency as a source of quick money. I don’t recommend it as a means of investment," he remarked.

Russia's adoption of Bitcoin for foreign trade reflects its broader economic strategy to diversify financial tools and reduce reliance on traditional systems, particularly amid ongoing geopolitical and economic challenges.

At the time of reporting, the Bitcoin price was $98,755.75.

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