Ukraine Trying to block Russian Use of Bitcoin in Foreign Trade

The scope of stringent sanctions imposed on Russia by many Western countries may increase. Recently Russia had told that it is using Bitcoin for international payments. Due to the attack on Ukraine, it is facing strict restrictions. Ukraine has said that it will ban Russia’s use of Bitcoin for international trade.

Recently Bitcoin created a new high level of more than $1,08,000. However, since then the price of Bitcoin has decreased significantly. Earlier this week, Russia’s Finance Minister Anton Siluanov had said that Russian companies are using cryptocurrency to avoid sanctions from Western countries. Vladyslav Vlasiuk, an adviser to Ukrainian President Volodymyr Zelenskyy, said his country had alerted its international partners about Russia’s plan earlier this year. Measures are being taken to stop payments in crypto.

Apart from Bitcoin, Russian companies are also using stablecoins like Tether for international payments. Recently, Russia changed the law to allow the use of cryptocurrencies to deal with the restrictions of Western countries. Russia’s Finance Minister Anton Siluanov had said, “Permission has been given to use bitcoins mined in Russia.” Russia is also among the major countries mining Bitcoin. Siluanov said, “These types of transactions are taking place. We believe it should be expanded.” He said that in future, international payments can be made in digital currencies.

Earlier this month, Russian President Vladimir Putin said that the current US government is reducing the role of the US dollar by using it for political purposes. Because of this many countries are having to turn to other assets. He gave the example of Bitcoin among these types of assets. Putin said that no one can regulate Bitcoin. Russia is also among the major countries mining cryptocurrencies.