How Russia Uses Crypto to Change Global Trade and Challenge US Dollar Control

Russia is employing cryptocurrency in a bold new way. The strategy aims to reduce reliance on the US dollar and have greater influence over its trade. With the help of digital currencies, Russia is discovering new ways of transferring money from one place to another. The idea is to use crypto to change global trade and break the dollar’s hold on the global economy. Blockchain technology makes transactions faster, cheaper, and difficult to trace.

Russia thinks digital currency is a mighty weapon for gaining the upper hand in global finance. As it gains popularity, the balance of power in global trade will likely shift. Will crypto become the new standard for the banking system? Only time can tell. Let’s discuss the implications this could have for global trade.

The US dollar’s role in global trade

The US dollar has been the world’s leading currency since the 1920s, after it replaced the British pound, as the US has a strong and steady economy. For perspective, the US accounts for approximately 26% of the world’s GDP. The dollar is viewed as a safe and dependable currency. Moreover, global oil trade is denominated in US dollars, bolstering the currency’s credentials in international transactions. 

The US also attracts the most foreign investments. Its financial markets are large, open, and accessible to others. Several countries have large investments in US Treasuries..

There are numerous advantages associated with a strong dollar.

• It reduces the US’s borrowing costs, makes imports cheaper, and shields the country from financial crises to a certain extent.

But there are downsides too.

• US multinational companies that derive their revenues from global markets are negatively impacted when the dollar strengthens. Moreover, the big question of ‘crypto to change global trade’ may threaten the dollar’s dominance.

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Russia’s geopolitical and economic context

Russia’s geopolitical and economic structure is defined by its enormous size, rich natural resources, and strategic objectives. Let’s understand this in detail:

• Geopolitical Strategy

Russia is a big European country that cannot be ignored from a geopolitical standpoint. Closely aligned with North Korea and China, Russia is always closely watched by the United States and Europe. Russia’s annexation of Crimea in 2014 and, more recently, the blatant invasion of Ukraine in February 2022 sent shivers down the spines of several of its neighboring countries, given the country’s military prowess.  

• Economic Context

Russia’s economy is primarily dependent on its massive natural resources. It is a big oil and natural gas producer, and several European nations depend on the country to keep their lights on. Oil and natural gas are major contributors to the country’s GDP and export earnings.  

Western sanctions imposed on Russia in the aftermath of the Ukraine invasion crippled its economy. However, it has somehow managed to stay afloat.

Russia’s crypto strategy

Russia’s crypto stance has shifted significantly in the last few months. In late 2024, the country expressed keen interest in adding Bitcoin to its national reserves. This was widely viewed as a measure to resist the Western sanctions and take more control of its financial future.

• Russian lawmakers even discussed possessing Bitcoin to limit reliance on the US dollar and global banking infrastructure. In fact, by September 2024, Russia permitted crypto in international trade, and the central bank intended to launch a national crypto exchange. One of the largest banks in Russia, Sberbank, also planned to accept crypto payments. Such moves were offered as a giant step toward financial innovation.
• However, Russia backtracked in early 2025. The government said it would continue with a more traditional reserve, such as gold and the Chinese yuan. The reason? Bitcoin is still very unstable, and it is also being used for illegal activities.
• Despite Russia’s inclination towards crypto and blockchain technology, experts are concerned that corruption would jeopardize its potential. Although Russia is still looking into digital assets, it is challenging to use crypto to change global trade. 

Read More: Crypto payment adoption on the rise among global hires: Deel Report

Bypassing sanctions with blockchain

Sanctions are means by which governments defend their interests and enforce norms around the globe. Sanctions usually include some form of financial sanction, such as capital restrictions, asset freezes, and trade restrictions. However, lifting sanctions on entities and people becomes a rare event as geopolitical tensions increase. Earlier, sanctions were executed through financial institutions. With the introduction of cryptocurrency, bad actors are increasingly devising new strategies to get around these restrictions.

Cryptocurrencies such as Bitcoin and Ethereum provide an avenue to transfer money without involving banks, thus making it more difficult for governments to trace and implement sanctions. To counter this, authorities such as the US Treasury’s Office of Foreign Assets Control (OFAC) have clarified what constitutes the virtual currency industry. These guidelines enable crypto services to implement sanctions utilising the KYC procedures and other provisions. More sanctions are being placed on crypto addresses and similar entities. Governments are working much harder to stop these activities and cooperate as cryptocurrency becomes a tool for evading sanctions. Indeed, if the question of crypto to change global trade is real, so are the risks.

Implications for global trade and US influence

US trade policies, such as tariffs, significantly impact world trade and markets. They can interfere with the free flows of trade, investor confidence, and stock markets globally. The most exposed countries rely strongly on sending exports to the US. 

Crypto is beginning to alter global trade on a large scale. International trade between businesses and countries would no longer require using conventional banks and/or US-controlled systems such as SWIFT. This means quicker, cheaper, and more direct payments across borders. For instance, countries sanctioned by the US can use crypto to bypass restraints, thus reducing the role of the US dollar in global trade.

As crypto continues to gain more popularity, it can dilute America’s status as the global financial leader. Several countries are considering their own digital currencies or using blockchain-based platforms to conduct trade deals. In the future, the possibility of crypto changing global trade could become real, thereby creating a more decentralized and open trading system.

Risks and challenges for Russia

However, Russia faces risks and challenges in using crypto to change global trade. First, crypto is very unstable. Prices may change rapidly, thus making trade risky. Second, crypto is not trusted or accepted by many countries. This restricts the number of countries with which Russia can trade. Third, robust global rules and sanctions can derail crypto deals.

Russia does not have well-defined crypto laws for conducting large trades. Finally, hacking and cybercrime are big threats, and crypto may be stolen without strong protection. Such problems make it impractical for Russia to use crypto safely and broadly in cross-border transactions. Therefore, for Russia, trade using crypto is not an easy or safe process.

Future outlook

Russia is looking to learn how to use cryptocurrency to trade with all other nations differently. Due to the sanctions imposed by the West, Russia is desperately trying to get around established banking institutions. Crypto provides a quick and borderless way of making payments. It might help Russia to trade with countries like China, India, and Iran. Cryptocurrency may help Russia reduce its reliance on the US dollar.

This may tilt the scales of global trade. However, there are risks in the form of price swings and regulations. If Russia’s move is successful, it may trigger other countries to emulate it. This tendency may make the future of global trade more digital and decentralized. 

Conclusion

Russia is exploiting the use of crypto to change global trade by minimizing its reliance on the US dollar. By exchanging digital currencies, it bypasses sanctions and establishes new trading routes. The transition allows Russia to develop closer relationships with nations seeking to avoid dollar control. The use of crypto makes it easier to make payments and more challenging to track. As more countries follow this trend, the global trade system could be altered.

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