Vladimir Putin Said Nothing Could Ban Bitcoin A Year Ago: Here's How Moscow Has Used Crypto Since Then To Overcome US Sanctions
Russian President Vladimir Putin asserted only a year ago that no power can ban Bitcoin (CRYPTO: BTC) regardless of what happens to the dollar. While many saw it as a message to the West on international sanctions, the country has taken targeted steps to open its economy to the world’s largest cryptocurrency.
Bitcoin Will Continue To Grow, Said Putin
During an investment conference in Moscow on Dec. 4, 2024, Putin argued that the influence of the dollar on the global economy was waning, paving the way for the growth of other instruments.
“For instance – Bitcoin. Who can prohibit its use? No one,” Putin said. “Or the use of other electronic ways of settlement. No one can ban the use of them.”
Putin added that the new instruments would “continue developing” regardless of what happens to the dollar.
Crypto To Bypass Russia’s Trade Disruptions
Shortly after these comments, Russia’s Finance Minister Anton Siluanov revealed that Russian companies have started using Bitcoin and other cryptocurrencies for cross-border transactions, described as a response to trade disruptions from sanctions imposed after the Ukraine war.
The minister said that it was possible to use the Bitcoin mined in Russia in foreign trade.
It’s worth noting that Putin greenlighted Bitcoin mining in the country earlier that year. He previously rejected the central bank's proposal to ban cryptocurrencies in 2022, arguing that the country possesses "competitive advantages" in the field of mining.
See Also: Ex-SEC Chair Gary Gensler Warns Crypto Remains ‘Speculative, Volatile’
Bank Of Russia’s Plan To Broaden Crypto Access
In accordance with Putin’s directives, the central bank proposed in March of this year to allow a limited number of “highly qualified” Russian investors to purchase and sell cryptocurrencies under a new three-year experimental legal regime.
The bank maintained that it still doesn’t see cryptocurrency as a means of payment and proposed a ban on all cryptocurrency transactions between Russian residents outside the experimental regime.
However, recent developments suggest attempts to expand cryptocurrency access for Russians. Bank of Russia First Deputy Governor Vladimir Chistyukhin said that rules should be eased beyond the “extremely narrow” category of qualified investors, given the sanctions in place, according to a Cryptopolitan report.
How Big Is Russia’s Bitcoin Mining Industry?
Maxim Oreshkin, the Deputy Chief of Staff of the Presidential Executive Office, said earlier this week that cryptocurrency mining generates “enormous sums” and must be factored into Russia’s balance of payments, according to a report by Vedomosti, the country’s leading business newspaper.
There is no publicly available official figure for how much Bitcoin the Russian government holds. Although, calculations from Russia’s National Cryptomining Association showed that 54,000 BTC were mined in 2023 alone.
Price Action: At the time of writing, BTC was exchanging hands at $$91,968.59, up 1.35% in the last 24 hours, according to data from Benzinga Pro.
Photo Courtesy: miss.cabul on Shutterstock.com
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