Index
ToggleBelarusian President Calls on Banks to Expand Use of Cryptocurrencies to Counter International Sanctions.
Belarusian President Alexander Lukashenko has called on the country’s banking system to increase the use of cryptocurrencies, after admitting that economic sanctions from the West have severely affected the national economy.
At a meeting with the heads of the Central Bank and commercial banks of Belarus, Lukashenko stressed that expanding the use of digital assets is imperative. “Over the past five years, the national economy and the Belarusian banking system have faced unprecedented challenges. The government and the Central Bank have received clear instructions. Now is the time to act,” he said.
Belarus' economy is struggling due to sanctions, cryptocurrencies become a "way out"
Minsk’s exports have fallen sharply since the EU and the US imposed tough sanctions on Belarus over its support for Russia’s military campaign in Ukraine. In this context, Lukashenko XEM cryptocurrencies as a tool to help the economy maintain international transactions and reduce its dependence on the tightly Capital traditional financial system.
Not only Belarus, many other countries such as Russia and North Korea have also taken advantage of the decentralized and difficult-to-control nature of cryptocurrencies to circumvent international sanctions.
According to the latest figures, in the first 7 months of this year, the total value of international payments via cryptocurrency exchanges in Belarus reached 1.7 billion USD. Experts predict that this figure could reach 3 billion USD before the end of the year. Currently, major exchanges such as Binance, OKX and Kucoin are all operating in this country.
Cryptocurrency Market Potential in Belarus
According to data platform Statista, by 2026, Belarus could have more than 855,000 cryptocurrency users, equivalent to nearly 10% of the population. This shows that cryptocurrencies are increasingly infiltrating people's daily financial lives.
However, to control the flow of money, Lukashenko signed a law in September 2023 banning cryptocurrency trading outside of domestic exchanges. The government wants to ensure that all activities are closely monitored while still taking advantage of the new technological developments.
Towards a comprehensive digital payment system
Not stopping at cryptocurrencies, Lukashenko also asked Belarusian banks to speed up the implementation of digital payment systems. He directed to put instant payment services into operation this year, after starting a pilot with QR codes.
A typical example is VTB Bank Belarus – a Russian- Capital bank – which now allows customers to pay by QR code directly integrated with the ERIP system. In addition, Lukashenko also emphasized the need to apply biometric technology, build a specialized IT company and integrate artificial intelligence to reduce dependence on foreign services.
Half-hearted attitude towards cryptocurrency
Belarus has a complicated history with cryptocurrencies. In 2018, the country became one of the first European countries to legalize cryptocurrency trading, exchange, and mining. By 2023, the government was considering banning peer-to-peer trading to tighten control. Meanwhile, Lukashenko has directed the Ministry of Energy to develop a crypto mining industry to make use of excess electricity.
