Dos and Don'ts: Finance Minister Explains Russia's Cryptocurrency Strategy

Anton Siluanov, Russia’s Finance Minister, has clarified how cryptocurrency will be utilized in the country’s financial system now that mining has become legal. Siluanov stated that international settlements will be the primary use case for crypto.

Finance Minister States Russia’s Cryptocurrency Strategy Focuses on International Settlements

Russia is now in the process of defining the country’s strategy for leveraging the cryptocurrency obtained after the legalization of mining activity. Anton Siluanov, Russia’s Finance Minister, gave insight into the Russian government’s thoughts on the issue.

While delivering his lecture titled ‘A Strong Financial System of the Country: General Principles and Development Prospects,’ Siluanov clarified that, in accordance with the spirit of the regulation signed by President Putin, cryptocurrency should be used for international payments, as it helps to circumvent the sanctions imposed on the country by the Western world.

“What do we use this cryptocurrency for? For external payments first of all,” he stressed. Furthermore, Siluanov stated:

In the current conditions, this is justified. And from the point of view of calculations – this is a good tool, in this regard, we will use them.

Siluanov highlighted the relevance of digital assets before, explaining the new payments system being designed for BRICS would also consider digital assets as part of its structure.

Read more: BRICS Payment System a SWIFT Substitute? Network to Implement Digital Assets and Financial Messages

However, he rejected the thesis of cryptocurrency assets as investment tools, warning about their “get rich quick” allure. “Some people see cryptocurrency as a source of quick money. I don’t recommend it,” he assessed. “As a means of investment – it is definitely not necessary, today there are many other ways to invest and earn good money,” Siluanov concluded.

Siluanov’s negative opinion of cryptocurrency as an investment contradicts the recent approval of several instruments that make it easier for Wall Street investors to enter the market. However, it shows the Russian vision focuses on the only use case that can alleviate some of the Western pressure on Russia’s payment rails.