Russia Authorizes the Use of Bitcoin for International Trade, Proclaiming it as the Future Trend!

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Russia Authorizes the Use of Bitcoin for International Trade
Anton Siluanov Warns of Bitcoin Investment Risks

Russian Finance Minister Anton Siluanov discussed alternative solutions to the use of the US dollar in international trade in an interview with the state-run media outlet “Russia-24” on December 25th. Anton Siluanov stated that the Russian government has passed legislation authorizing the use of digital financial assets (DFA) and Bitcoin (BTC) in foreign trade transactions.

According to previous reports, Russia officially recognized Bitcoin as a digital financial asset through the “Digital Financial Assets Act” passed in 2021. The law grants legal status to DFAs but prohibits their use as a means of payment within the country. According to the Russian Finance Minister, trials have already begun to apply DFAs and Bitcoin to foreign trade, and Russia plans to further develop and expand these transactions.

In the interview, Anton Siluanov stated that it is “completely understandable” to use DFAs as an alternative to the US dollar in foreign trade under the current circumstances, as it enables the application of modern infrastructure. He pointed out that this is an innovation in the global settlement system and added:

“This is the trend of the future.”

Anton Siluanov mentioned that, under the experimental legal regime effective from September 2024, Russia can freely use digital financial assets, including Bitcoin, in foreign trade. He emphasized:

“We can use digital financial assets to pay for goods delivery. We can also trade Bitcoin mined within the Russian Federation under the experimental legal regime.”

The Finance Minister mentioned that Russia has already legalized cryptocurrency mining earlier this year and believes that they need further development and expansion. However, Russia recently announced a comprehensive ban on cryptocurrency mining in 10 regions, including Dagestan, Ingushetia, and Chechnya, starting from January 1st, 2025, for a period of six years. In addition to the comprehensive ban, Russia will also impose partial restrictions on mining operations in three regions of Siberia during the peak winter energy consumption period. These policies seem to primarily aim at controlling energy consumption.

Anton Siluanov Warns of Bitcoin Investment Risks

However, despite supporting the application of cryptocurrency in international trade, Anton Siluanov does not encourage public participation in cryptocurrency investments. The minister previously stated in a speech at a local educational event on November 6th:

“Some people see cryptocurrency as a tool for getting rich quickly. I do not recommend it as an investment tool. Absolutely not recommended, as there are many other ways today to invest and obtain stable returns.”

When Anton Siluanov issued this warning, the price of Bitcoin had already surpassed the historical high of $76,000 and reached the significant milestone of $100,000 approximately 30 days later. Reference source