On July 30, 2024, Russia took a significant step in its economic strategy by passing a law that legalise the use of Bitcoin and other cryptocurrencies for international trade.
This decision comes in response to the challenges posed by Western sanctions, which have impacted Russia’s ability to conduct business globally.
The new legislation, which will take effect on September 1, 2024, allows Russian businesses to engage in cryptocurrency transactions with key trading partners such as China and India.
Central Bank Governor Elvira Nabiullina emphasized that this move is essential for addressing payment delays that have hindered imports, which saw an 8% decline in the second quarter of 2024.
While the law opens the door for international crypto transactions, it still prohibits the use of cryptocurrencies for domestic payments, indicating a cautious approach to digital currencies within Russia.
This development highlights Russia’s ongoing efforts to adapt its economy in the face of geopolitical pressures.