Russia uses Bitcoin to evade Western sanctions
Last Updated on 27 December 2024 by CryptoTips.eu
The Kremlin recently amended its foreign trade legislation so that it is now possible for Russian companies to use Bitcoin to settle debts and pay foreign suppliers. In this way, Russia is trying to circumvent the many Western sanctions imposed by the war in Ukraine.
Press conference
Earlier this month, Russian President Putin gave his annual press conference at which both journalists and citizens can ask extensive questions. Asked about the use of crypto by Russian companies, Putin responded that the current US administration is undermining the role of the dollar itself as a reserve currency by using it for political purposes, forcing many countries to turn to alternative assets such as digital currencies.
🇷🇺 Russia just says it's using #Bitcoin to evade sanctions.
— Vivek⚡️ (@Vivek4real_) December 26, 2024
GAME THEORY IS PLAYING OUT 🚀 pic.twitter.com/RlJ6snlr8T
Putin was furthermore convinced that Bitcoin was a good example of these alternative assets and that no one in the world could ever regulate Bitcoin. Putin’s comments show that the Russian leader supports the expanded use of crypto by Russian companies.
Change
The adoption of Bitcoin by Russian companies to make foreign payments marks a major change for Vladimir Putin’s government.
Before Russia started the war with Ukraine, Putin had largely banned the use of digital currencies for his own population. Ever since then, and partly due to the many Western sanctions that make payments to trading partners such as Turkey, India and China more difficult (because no company wants to have payments from Russia on its books), the Kremlin has allowed this. The Bitcoin mining industry has also grown exponentially in Russia.