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Under an avalanche of Western sanctions, Russia is turning to an unexpected ally: Bitcoin. This flagship cryptocurrency, which Moscow intends to use, is establishing itself as an escape route to bypass the dollar and financial restrictions. With ideal conditions for Bitcoin mining, the country aims to become a major player in the sector. However, this strategic shift raises fundamental questions about its economic and legal implications.
Bitcoin, a strategic weapon for Russia
As of September 2024, Russia, on the brink of economic disaster, is experimenting with a legal regime that allowsthe use of digital financial assets (DFA) in international trade. According to Anton Siluanov, Minister of Finance, these modern tools, including Bitcoin, could effectively replace the dollar in transactions.
🚨🇷🇺 RUSSIA TRADES DOLLARS FOR BITCOIN?!
Who needs the U.S. dollar? Russian companies are now using bitcoin and other cryptocurrencies for international trade.
Russian Finance Minister, Anton Siluanov:
"As part of the experimental regime, it is possible to use bitcoins, which… pic.twitter.com/jaAXorPZPy
— Mario Nawfal (@MarioNawfal) December 25, 2024
” We may pay for the delivery of goods with digital financial assets. This is also possible with bitcoin, which we mine here ” he declared on the Russia-24 channel.
Specifically, this approach offers several advantages :
- Reducing dependence on the US dollar;
- Facilitating trade with countries subject to similar sanctions;
- Use of vast Russian energy resources for mining.
The country will not be satisfied with mining: it intends to develop a robust infrastructure to expand these practices from 2025. But beware, everything is not rosy despite the developing crypto market: Siluanov warns citizens against mining.with the risks of crypto speculationwhich reminds us that Bitcoin is not a quick way to riches.
Cryptocurrency trading, between opportunities and caution
If Russia legalizes bitcoin mining, it stays beware of cryptocurrency trading. Siluanov advised against investing in Bitcoin last November when it was flirting with all-time highs above $76,000. His warning:
” Some see cryptocurrencies as a source of quick profits. This is not an investment solution. »
The challenge for Moscow is clear: take advantage BTC as an economic lever without inciting speculative frenzy. The 2021 law gives the DFA legal status but prohibits their use as a means of payment inside the country.
This paradox reflects prudential management aimed at regulating technology that could both stimulate and destabilize the economy.
In addition, Russia, rich in energy resources and ambitions, sees Bitcoin as an economic and political weapon. By inviting the BRICS to take advantage of these ideal conditions, it aims to build a new multipolar economy where BTC mining and cryptocurrencies redefine the rules of the game.
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The blockchain and crypto revolution is in full swing! And on the day the effects are felt by the most vulnerable economy in this world, I will say against all hope that I had something to do with it
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.