Russia showed multiple activities around Bitcoin & Cryptocurrencies, as Donald Trump signed an executive order to approve the Bitcoin Strategic Reserve (BSR).
Summary
- Russia is now officially using Bitcoin for international trade.
- President Vladimir Putin instructed the country’s central bank to change its strict stance around Cryptocurrencies.
- The Bank of Russia has been trying to restrict small investors from investing in cryptocurrencies.
- Donald Trump is trying to shut down the war between Russia & Ukraine.
Russia has a mixed stance around Cryptocurrencies. Before 2022, the Bank of Russia, the country’s national central bank, was planning to introduce a Crypto ban framework in the country, but in Q1 of 2022, the Russia vs Ukraine war changed the country’s economic conditions, forced the country to adopt blockchain technology & cryptocurrencies and fight against the financial sanctions imposed by the western countries.
Local media reports confirmed that Russia has now officially shifted to crypto-backed payment services to back cross-border trade settlements. That means all the Russian allies are using Bitcoin & cryptocurrencies to complete the payment against the exchange of goods.
A popular Indian Crypto influencer who has expertise in Indian laws, Kashif Raza, explained in simple words how this system works.
He explained the use of cryptocurrencies in international trade works in the following way.
- Buyer Pays in Yuan: A Chinese buyer purchases Russian oil (or other goods) and sends payment in yuan to a middleman’s offshore account.
- Middleman Converts to Crypto: The middleman takes the yuan, buys cryptocurrency, and transfers it to another account.
- Crypto Sent to Russia: The crypto is then moved to a third account in Russia.
- Converted to Rubles: Finally, the crypto is exchanged for Rubles, allowing Russian sellers to receive their payment.
With this method of international trade, Russia easily bypasses the financial sanctions imposed by Western countries.
Shift in Crypto Policy
Reportedly, Vladimir Putin, the president of Russia, instructed the Bank of Russia to reassess Bitcoin policy. In simple words, the country’s president asked the crypto-hater central bank to consider changing its stance around this innovative sector.
Popular Bitcoin influencer Lark Davis said that such developments are proof that FOMO around Bitcoin adoption is now ramping up.
It is worth it that recently the Bank of Russia proposed a new plan to restrict crypto investors. Under the proposed approach, people with securities and deposits exceeding 100 million rubles ($1.14 million in US dollars) or income exceeding 50 million rubles will be allowed to invest in digital assets.
In response to such developments around the Russian crypto space, Binance co-founder Changpeng Zhao (CZ) stated that developments are going as rich people want.
Russia vs Ukraine Relationship
As we know, the war between Russia and Ukraine started in Feb 2022 & after that, not only Ukraine but also Russia faced significant issues. Till that date, Ukraine has been facing Russian military attacks.
A report by Reuters on 13 March 2025 confirmed that under the leadership of American President Donald Trump, Russia agrees with U.S. proposals for a ceasefire in Ukraine but emphasized that any cessation of hostilities must address the conflict’s root causes.
Such developments are basically a hint that the situation is heading toward a better outcome. Furthermore, this discussion will take place with Trump to make the situation smooth & friendly for both countries.
Read also: Donald Trump Wants a Stake in Binance US Crypto Exchange: Update
Disclaimer: We at Bitcoinik.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice and viewers should consult their financial advisors before investing.
