Russian Companies Embrace Cryptocurrencies for International Payments

MOSCOW (Reuters) – Russian companies have begun using bitcoin and other digital currencies in international payments following legislative changes allowing such use to counter Western sanctions, Finance Minister Anton Siluanov said on Wednesday.

Sanctions have complicated Russia's trade with major partners like China and Turkey, as local banks are extremely cautious with transactions related to Russia to avoid scrutiny from Western regulators.

This year, Russia permitted the use of cryptocurrencies in foreign trade and has taken steps to legalize the mining of cryptocurrencies, including bitcoin. Russia is one of the global leaders in bitcoin mining.

> "As part of the experimental regime, it is possible to use bitcoins, which we had mined here in Russia (in foreign trade transactions)," Siluanov told the Russia 24 television channel.

> "Such transactions are already occurring. We believe they should be expanded and developed further. I am confident this will happen next year," he added, expressing that international payments in digital currencies represent the future.

Earlier this month, President Vladimir Putin stated that the current U.S. administration is undermining the role of the U.S. dollar as the reserve currency by using it for political purposes, forcing many countries to seek alternative assets.

He highlighted bitcoin as an example of such assets, asserting that no one in the world could regulate bitcoin. Putin's remarks suggest that the Russian leader supports the extensive use of cryptocurrencies.