Russia officially began using cryptocurrencies as a payment mechanism for cross-border transactions in order to circumvent Western economic sanctions.
The minister of Finance of RussiaAnton Siluanov, revealed this week that Russian companies began using Bitcoin and other digital currencies in international payments after legislative changes allowed it. Russia in this way explores the use of cryptocurrencies to make and receive international payments, especially with commercial allies such as China to leave aside dollar reserve currency.
Cuba, Iran and El Salvador will be some of the destinations chosen to use – or explore the use – such assets in bilateral agreements instead of the US dollar or other dominant currencies.
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Russian companies began to stop using the dollar
For this to happen, Russian lawmakers created an experimental legal framework this year for cryptocurrency miners that includes a provision whereby approved entities can use tokens mined among miners domestically for payments in international trade agreements.
“As part of the experimental regime, it is possible to use bitcoins, which we had mined here in Russia (in foreign trade transactions),” Siluanov detailed, adding: “Such transactions are already occurring. We believe they should be expanded and developed further. “I’m sure this will happen next year.”
Putin’s comments suggest that the Russian leader supports the extensive use of cryptocurrencies and evidence the nation’s growing interest in leveraging digital currencies amid restricted access to global financial systems. Russia recently approved a tax framework that recognizes cryptocurrencies as property.
Source: Ambito
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