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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 the alternative to the US dollar in international trade in an interview with the state media outlet “Russia-24” on December 25. 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. This law grants legal status to DFAs but prohibits their use as a means of payment within the country. According to the Minister of Finance, 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 the use of DFAs as an alternative to the US dollar in foreign trade is “completely understandable” 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 the delivery of goods. We can also trade with Bitcoin mined within the Russian Federation, according to 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 complete ban on cryptocurrency mining in 10 regions, including Dagestan, Ingushetia, and Chechnya, starting from January 1, 2025, for a period of six years. In addition to the total ban, Russia will also partially restrict mining operations in three Siberian regions during peak winter energy consumption. These policies seem to be primarily aimed 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 6, “Some people see cryptocurrencies as a tool for getting rich quickly. I do not recommend using it as an investment tool. I absolutely do not recommend it. Today, there are many other ways to invest and earn 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.