Table of Contents
Toggle
Russia Authorizes the Use of Bitcoin for International Trade
Anton Siluanov Warns of Bitcoin Investment Risks
Russian Finance Minister Anton Siluanov discussed alternatives to the US dollar in international trade in an interview with the state media outlet “Russia-24” on December 25th. 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 in 2021 through the “Digital Financial Assets Act”. 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, experiments with the use of DFAs and Bitcoin in foreign trade transactions have already begun, and Russia plans to further develop and expand these transactions.
During the interview, Anton Siluanov stated that it is “understandable” to use DFAs as an alternative to the US dollar in foreign trade in the current situation, 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 that will come into effect in September 2024, Russia will be able to 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 transact using Bitcoin mined within the Russian Federation in accordance with the experimental legal regime.”
The Finance Minister mentioned that Russia had 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 for six years from January 1, 2025, in 10 regions including Dagestan, Ingushetia, and Chechnya. In addition to the comprehensive ban, Russia will partially restrict mining operations in three regions of Siberia during periods of high winter energy consumption. These policies seem to primarily aim at controlling energy consumption.
Anton Siluanov Warns of Bitcoin Investment Risks
Despite supporting the use of cryptocurrencies 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 cryptocurrencies as a tool for quick wealth. I do not recommend it as an investment instrument. Absolutely not recommended, as there are many other ways today to invest and gain stable income.”
As Anton Siluanov issued this warning, the price of Bitcoin had already surpassed the historical milestone of $76,000 and reached $100,000 approximately 30 days later. Reference
