Russian lawmakers have made a groundbreaking decision to allow businesses to use Bitcoin and other cryptocurrencies in international trade, a move aimed at bypassing Western sanctions and streamlining payment processes with key trading partners. Central bank Governor Elvira Nabiullina has announced that the first cryptocurrency transactions will take place before the end of the year, with the establishment of an experimental infrastructure for these payments.
The new law, set to take effect in September, also includes regulations on cryptocurrency mining and the circulation of digital assets, while maintaining the ban on cryptocurrency payments within Russia. The decision comes as delays in international payments have led to an 8% drop in Russian imports in the second quarter of 2024, highlighting the need for alternative payment methods.
Despite efforts to shift to trading partners’ currencies and develop alternative payment systems, many transactions still rely on dollars and euros via the SWIFT system, leaving them vulnerable to secondary sanctions. The move to allow cryptocurrency use in international trade is seen as a strategic step to mitigate the economic challenges posed by sanctions and ensure smoother trade operations.
Anatoly Aksakov, the head of the Duma lower house of parliament, described the decision as “historic” in the financial sphere, emphasizing the importance of adapting to the changing global economic landscape. With the new legislation in place, Russian businesses are poised to navigate international trade more efficiently and effectively in the face of ongoing geopolitical tensions.
