Russia Expands Bitcoin and DFA Use in Global Trade Under Experimental Regime

Russia is advancing its use of digital financial assets (DFAs) and Bitcoin in international trade, as confirmed by Finance Minister Anton Siluanov during an interview with Russia-24 on December 25. The move reflects a strategic shift toward alternatives to the US dollar in global transactions, leveraging the nation’s legal framework and innovative technologies.

Scaling Bitcoin in Foreign Trade

Siluanov highlighted that Russia has already implemented legislation enabling foreign trade settlements using DFAs and Bitcoin. “We can use mined Bitcoin,” the minister stated, emphasizing that these tools are not just theoretical but are actively in use under the experimental legal regime introduced in September 2024.

He described the integration of DFAs into global trade as a forward-thinking step, calling it a glimpse into the future of financial settlements. Russia’s capacity to use Bitcoin mined domestically within this framework marks a significant milestone in its digital finance journey.

Legalized Mining Supports Economic Goals

Earlier this year, Russia formally legalized cryptocurrency mining, laying the groundwork for the integration of Bitcoin into its economic systems. Siluanov expressed confidence in expanding these practices, predicting a substantial scale-up in 2025.

The finance minister also noted that DFAs enable modern infrastructure and innovation in international trade, making them a viable alternative to traditional settlement systems.

Caution Amid Bitcoin’s Price Surge

Despite Russia’s strategic embrace of Bitcoin in trade, Siluanov warned against speculative investment in cryptocurrency. Addressing the public in November, he urged caution, stating, “Some people see cryptocurrency as a source of quick money. I don’t recommend it as a means of investment.”

At the time, Bitcoin was reaching unprecedented highs, surpassing $76,000 and edging closer to $100,000. The minister advised exploring other investment avenues, underscoring the volatility of the crypto market.

A Legal and Innovative Framework

Russia’s progressive stance on DFAs aligns with its 2021 legislation, which granted digital financial assets legal status while restricting their use as a domestic payment method. However, the country’s experimental legal regime now allows for broader utilization in global trade.

As Russia continues to innovate in digital finance, the role of Bitcoin and DFAs is set to expand, reflecting the nation’s commitment to building a resilient and modern financial infrastructure.