Russia Tests Using Bitcoin in International Trade

Bitcoin’s price rally is slowing down as the price has yet to return to the $100,000 mark. The market is typically less volatile during Christmas and New Year, when investors are mostly focused on resting and enjoying the festive atmosphere rather than trading Bitcoin.

Bitcoin’s Liveliness Index continues to show an upward trend, although the price is currently stable. This reflects that long-term investors are gradually liquidating their positions. If this trend continues, selling pressure from long-term investors could push Bitcoin into a downward correction.

Meanwhile, positive news came from Russia as the country tested the use of digital financial assets in international trade under legal regulations. Russian Finance Minister Anton Siluanov discussed alternatives to the US dollar in international transactions in an interview with state-run TV channel Russia-24 on December 25.

Siluanov said that the Russian government has passed a law allowing the use of digital financial assets (DFAs) and Bitcoin in international transactions. According to the minister, international trade transactions using these methods have already been implemented and Russia plans to develop and expand their scale in the future.

In the interview, Anton Siluanov asserted that in the current context, the implementation of digital financial assets (DFAs) in international trade as an alternative to the US dollar is “absolutely reasonable,” as it allows taking advantage of modern infrastructure.

He emphasized that this is a step forward in the global payment system and added: “This is the future.”

Siluanov said Russia is now allowed to use digital financial assets — including Bitcoin — in international trade transactions under a regulatory trial regime that is expected to come into effect in September 2024.

“We can use digital financial assets to pay for delivery transactions. Bitcoin, which we mine in the Russian Federation, can also be used in this trial regime,” he said.