Russian government officials have stated that Russia is actively experimenting with digital financial assets (DFAs) in international trade and carrying out related work in accordance with the country's relevant laws.

Russia authorizes the use of Bitcoin for international trade

Russian Finance Minister Anton Siluanov discussed alternative options for the US dollar in international trade during an interview with the official media Russia-24 on December 25th. Anton Siluanov stated that the Russian government has passed legislation authorizing the use of digital financial assets (DFA) and Bitcoin (BTC) in foreign trade transactions.

According to previous reports, Russia officially recognized Bitcoin as a digital financial asset through the Digital Financial Assets Act in 2021. This law grants legal status to DFA, but prohibits its use as a means of payment domestically. According to the country's finance minister, the experiment of applying DFA and Bitcoin to foreign trade transactions has begun, and Russia plans to further develop and expand these transactions.

In the interview, Anton Siluanov It is' completely understandable 'to apply DFA to foreign trade as a substitute for the US dollar in the current situation, as this makes the application of modern infrastructure possible. He pointed out that this is an innovation in the global settlement system and added:

This is the trend of the future

Anton Siluanov According to the experimental legal system that will come into effect in September 2024, Russia is free to use digital financial assets, including Bitcoin, in foreign trade. He emphasized:

We can use digital financial assets to pay for the delivery of goods. We can also use Bitcoin mined within the territory of the Russian Federation to conduct transactions under an experimental legal system

The Minister of Finance mentioned that Russia legalized cryptocurrency mining earlier this year, and the Russian government believes that they need further development and expansion. However, Russia announced a few days ago that 10 regions including Dagestan, Ingushetia, and Chechnya will completely ban cryptocurrency mining from January 1, 2025, for a period of six years. In addition to a comprehensive ban, Russia will also partially restrict mining operations in three regions of Siberia during the peak winter energy consumption period. And this series of policies seems to be mainly aimed at controlling energy consumption.

Anton Siluanov warns of Bitcoin investment risks

However, despite supporting the application of cryptocurrency in international trade, Anton Siluanov does not encourage the public to participate in cryptocurrency investment. The minister had previously stated in a speech at a local education event on November 6th:

Some people see cryptocurrency as a tool for getting rich quickly. I don't recommend using it as an investment tool. Absolutely not recommended, there are many other ways to invest and earn stable returns today

When Anton Siluanov issued the warning, the price of Bitcoin had already surpassed a historic high of $76000 and broke the important milestone of $100000 about 30 days later.

Reference source