Russia May Use Bitcoin (BTC) and Other Digital Assets to Settle International Transactions

Russia might use Bitcoin, other digital assets in international transactions

Russia has been hit with heavy U.S. sanctions since the start of the Ukraine conflict, and the country’s vast natural resources are no longer able to fully offset the impact on its economy.

The sanctions have affected Russia's trade, with even longtime partners like Turkey and China being impacted. Banks are growing more cautious of Russia-related transactions, fearing increased scrutiny from Western regulators.

As a result, Russia has been pushing heavily for an alternative to the U.S. Dollar in international trade. At this year's BRICS summits, the nation was among those pushing for the “de-dollarization” of global trade among BRICS members.

With that in mind, the country’s Finance Minister Anton Siluanov recently talked about greenback alternatives.

In an interview with a state-owned news channel, Siluanov mentioned digital assets as the most likely alternative, including using the nation’s large reserves of mined Bitcoin for global trade.

"We have large reserves of bitcoin that were mined earlier, and we can use them in settlements," Siluanov said.

However, the finance minister did not go into detail on how exactly Bitcoin would factor into Russia's international trade. Siluanov also noted that while digital assets are a likely alternative to the U.S. Dollar, the matter is still being discussed.

"The topic is being discussed, but there is no final decision yet on the matter," he added.

Despite being a key player in the digital economy, Russia also recently announced that they plan on halting crypto mining rates in the country.

Just yesterday, the country announced that they will be imposing a 6-year ban on mining in 10 different regions of the world’s largest country by landmass.

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