Russia Adopts Bitcoin for International Trade, Reduces Dependence on Dollar

• Russia uses Bitcoin to circumvent sanctions on international trade
• Bitcoin Mining Generates Billions in Tax Revenue in Russia
• Cryptocurrencies become an alternative to the dollar in global transactions

Russia has taken a significant step in its economic strategy by adopting the use of Bitcoin and other cryptocurrencies for international trade. This change comes amid strict sanctions imposed by Western nations, which have made it difficult for the country to access traditional financial systems.

New legislation passed in 2024 allowed the legalization of cryptocurrency mining and the use of digital assets for cross-border payments. According to Russian Finance Minister Anton Siluanov, Bitcoin transactions are already underway and are expected to expand in the coming years. “Such transactions are already taking place. We believe that they should be developed and expanded further,” Siluanov said in an interview with state broadcaster Russia 24.

The implementation of these measures is in line with the vision of President Vladimir Putin, who has criticized the political use of the US dollar and highlighted the potential of cryptocurrencies as an alternative for global trade. “The United States is weakening the role of the dollar as a global reserve currency. No one in the world can regulate Bitcoin,” Putin recently stated.

In 2023, Russia produced around 54 Bitcoins, generating approximately 50 billion rubles in tax revenue. With cheap electricity and low temperatures, the country is the second largest Bitcoin mining hub, behind only the United States. However, to offset the impact on energy consumption, the government has imposed restrictions in ten regions, including Dagestan and Chechnya, with the bans valid for six years starting in January 2025.

The adoption of cryptocurrencies for foreign trade emerges as an effective alternative to bypass SWIFT-based systems and reduce dependence on the US dollar. The use of digital assets provides a decentralized means of payment, which is less vulnerable to economic sanctions.

At the time of publication, the price of Bitcoin was quoted at US$98.811,03, up 0.1% in the last 24 hours.

These changes highlight the growing role of cryptocurrencies in the global economic landscape and reinforce the importance of decentralized financial solutions in politically adverse environments.