Russia’s skirts with bitcoin sanctions

Western efforts are undermined to punish Russia using a set of sanctions, as Russian companies are increasingly using Bitcoin currency to evade sanctions.

In December, Finance Minister Anton Celwanov admitted that Russian companies were already using Bitcoin and other cryptocurrencies for international trade after a bill signed by President Vladimir Putin. The law, which occurred last year, is regulated by the ownership of cryptocurrencies and mining, while maintaining a ban on their home use.

Putin’s war with Ukraine resulted in the ban on Russian banks from the quick payment platform (the Financial Communications Association between World Banks), which effectively stopped its ability to finance international trade payments and deal with borders. The sanctions dealt with a strong blow to the Russian economy and made international banks be careful not to deal with Russian origin payments, afraid that they would be in violation of the sanctions.

Putin has since accused the United States of arming the dollar. However, the Kremlin’s decision to include Bitcoin in its economic arsenal against sanctions sparked a discussion that governments are trying to control the use of a central cryptocurrency. Ironically, this contradicts one of the main principles surrounding the creation of Bitcoin – central.

Bitcoin’s use of Russian companies is currently limited to approved entities, but observers say the recent Siluanov comments indicate that more companies will be allowed to make payments with the normative encrypted currency.

Russia’s change in the heart is Jarring. Recently in 2022, the CPR was pushing for a complete ban on encrypted currencies. But the main officials, including the author of the draft law, Anton Gorielkin and the CBR CBR Nabiolina ruler, acknowledged that the recent legislative change aims to alleviate the impact of sanctions while facilitating international payments, according to the analysis of the Blockchain data platform.

Russia’s pivotal decision has sparked a discussion about the scaling efforts by Brics Trade Bloc, which is Russia as a founding member, amid speculation that society will move forward with gold -backed Stablecooin. President Donald Trump, who referred to an interest in establishing the American Bitcoin Reserve, condemned this initiative. The “tariff man” has threatened himself with 100 % definitions to all the countries concerned in case of proceeding with the plan.