Russia explores Bitcoin use to circumvent US sanctions

Russian officials are currently evaluating the use of Bitcoin (CRYPTO:BTC) in international trade as a strategy to circumvent the U.S. dollar system and mitigate the impact of ongoing sanctions on their economy. 

This initiative involves permitting local mining firms to sell their Bitcoin to international buyers and use these funds for import payments, thereby reflecting a broader effort to neutralise economic restrictions. 

Insights from Bloomberg, as relayed by Matthew Sigel, head of digital assets at VanEck, indicate that senior lawmakers are supporting this move. 

This development follows Iran's prior decision to engage in trade using Bitcoin generated by local miners, highlighting a growing trend among sanctioned nations. 

During the recent BRICS Business Forum, Russian mining company BitRiver announced plans to collaborate with the Russian Direct Investment Fund (RDIF) to enhance Russia's position in the artificial intelligence sector and boost its global computing power. 

Igor Runets, CEO of BitRiver, emphasised the significance of mining in this context: “Mining is not just the foundation of the digital economy. If Russia reaches parity with the US in mining, our country becomes indispensable. 

This lays a foundation for economic growth, liquidity in settlements with our partners, and the advancement of AI.” 

The BRICS alliance, originally comprising Brazil, Russia, India, China, and South Africa, has expanded to include Iran, Egypt, Ethiopia, and the United Arab Emirates, with additional membership requests from other countries. 

By leveraging Bitcoin, Russia seeks to gain greater autonomy in international trade and diminish the adverse effects of economic sanctions. 

At press time, the Bitcoin price was $67,340.07.