Russia’s Finance Minister has reportedly confirmed that many companies in the country are now using Bitcoin (BTC) to conduct foreign trade and circumvent Western sanctions.
Reuters reports that the Russian government recently took legislative action to legalize mining of the crypto king and other crypto assets, allowing companies to find ways to circumvent sanctions imposed on them by the West.
As Russian Finance Minister Anton Siluanov told Reuters earlier this week:
“As part of the experimental regime, it is possible to use bitcoins that we had mined here in Russia (in foreign trade transactions). Such transactions are already taking place. We believe that these should be further expanded and developed. I am confident that this will happen next year.”
Earlier this month, Russian President Vladimir Putin said the US government was undermining the use of the US dollar as a reserve currency, forcing countries to turn to other assets.
At the time, Putin called Bitcoin the main replacement for the US dollar as a reserve, noting that no country could regulate it.
However, earlier this week, the Russian government reportedly said it plans to shut down Bitcoin mining in 10 different regions across the country from January 1, 2025 due to energy shortages.
The ban period applies to both mining pool miners and is expected to remain in effect until March 5, 2031.
BTC is trading at $98,505 at the time of writing, up fractionally on the day.
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Featured image: Shutterstock/ProximaCentauri1/Natalia Siiatovskaia
