- At the BRICS summit in Kazan, Russia is exploring ways to utilize Bitcoin and XRP in bypassing the western sanctions.
- Additionally, the Brics member has plans to allow Bitcoin miners to sell BTC internationally, enabling cross-border trade outside traditional financial systems.
Russia together with the BRICS nations has been looking forward to strengthening its economic ties. The inception of the BRICS alliance has revitalized this. Russia, one of the founding members of the BRICS initiative is turning to Bitcoin and other cryptocurrencies to get rid of Western sanctions.
This matter has been highly discussed at the ongoing BRICS summit in Kazan, where Russian leaders are actively exploring new ways to utilize the power of crypto.
At the summit, Russian lawmakers are discussing the idea of allowing Bitcoin miners to sell their BTC to foreign consumers. This would allow international buyers to use Bitcoin and other cryptocurrencies for payments, therefore bypassing the traditional financial system, which includes the U.S. Dollar.
Russian President, Vladimir Putin highlighted that the BRICS nations which include Brazil, Russia, India, China, South Africa, Egypt, and the United Arab Emirates are exploring alternative payment methods, and the new asset class which includes Bitcoin and XRP has been highly considered.
It is worth mentioning that the BRICS initiative represents over 40% of the world’s population and 24% of the global economy. By use of Bitcoin, could be a pivotal instrument to challenge the dominance of the Western financial system.
Rolling out the mining plan will be BitRiver, one of the country’s largest cryptocurrency mining company which in fact boasts 21 data centres and 10 more coming up soon. Additionally, the mining company has partnered with the Russian Direct Investment Fund to further Russia’s goal.
Igor Runets, CEO of BitRiver, emphasized that this initiative will enhance liquidity for cross-border transactions within BRICS countries. It will also boost the development of AI and other digital technologies, which aligns with Russia’s broader goal of building an independent technological infrastructure.
Coming in favor of the mining plan, August 2024 saw Russia back to the law book, implementing a mining law. This legislation established clear guidelines for mining operations which required miners to register with the government.
More significantly, the law allows Russian-mined cryptocurrencies like Bitcoin to be used for international payments, providing a new avenue for Russia to engage in global trade.
Additionally, plans for launching Russian crypto exchanges in Moscow and St. Petersburg are underway, which could further bolster the country’s digital economy and streamline international transactions using cryptocurrencies.
