Russia Using Bitcoin for Foreign Trade Following Legislative Changes; Check Details

New Delhi, December 26: Russia is reportedly using Bitcoin as a means to conduct foreign trade amid Western sanctions. The development is said to come after legislative changes that allow the use of digital currencies as substitutes for regular financial systems.

Russia is looking to get around Western sanctions with trading partners such as China and Turkey, by using cryptocurrencies. It can be seen as Russia's strategy to strengthen its economic ties and conduct international trade without relying on traditional financial systems. Crypto Mogul Do Kwon’s Appeal Rejected by Montenegro’s Constitutional Court Over Verdict on His Extradition, Will Face Trial.

As per a report of Reuters, Russian companies have started to use Bitcoin and other digital currencies for payments with other countries. It follows after new laws were introduced that make it possible to use cryptocurrencies, which have become harder to access because of Western sanctions.

Finance Minister Anton Siluanov reportedly mentioned that these transactions are part of a trial programme to increase the use of mined Bitcoins in international trade. These kinds of transactions are already taking place. He is optimistic that these practices will become more common over the next year.

Earlier this year, Russia gave approval for the use of cryptocurrencies in international trade. The country has also started working towards legalising cryptocurrency mining, including Bitcoin. The central bank is reportedly planning to set up a trial system to support cryptocurrency payments. The experimental infrastructure might be intended to show how cryptocurrency payments can be used effectively and securely in financial transactions. Apple To Become World’s Most Valuable Company Soon, Nears USD 4 Trillion Market Cap Amid AI Push and iPhone Supercycle: Reports.

Russian lawmakers approved a new bill that will enable businesses to use cryptocurrencies for international trade. The law covers the mining of cryptocurrencies and the use of other digital assets. However, it does not change the ban on using cryptocurrencies for payments within Russia. Western sanctions have made it difficult for Russia to trade with partners like China and Turkey. As per reports, local banks are being careful with transactions related to Russia because they want to avoid attracting attention from Western regulators.

(The above story first appeared on LatestLY on Dec 26, 2024 11:32 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).