According to the state-backed Belarusian Telegraph Agency, the President of Belarus, Alexander Lukashenko, has urged banks to expand their cryptocurrency utility to escape sanctions. Western sanctions have had a detrimental effect on the Belarusian economy. Lukashenko stated, “Over the past five years, the national economy, and with it the Belarusian banking sector, have faced unprecedented challenges.“
Will Cryptocurrency Use Help Belarus Escape Sanctions?
In his statement, Lushenko highlighted the growing number of crypto payments in the country. He stated, “In the seven months of this year, the volume of external payments through cryptocurrency exchanges amounted to $1.7 billion. According to expert estimates, it may reach $3 billion by the end of the year.“
Lushenko further added, “Banks must try to make the most of modern technology. Digitalization is not an end in itself; it must deliver tangible economic results.“
Lukashenko’s latest decision comes days after he asked lawmakers to push out clear and transparent regulations for Belarus’s cryptocurrency market. The president stated, “The task of the state in these conditions is to determine understandable, transparent rules of the game and mechanisms for control in this sphere. It is important because it is a new area for the country.“
Cryptocurrencies seem to be the go-to sector for sanctioned countries. Russia, Iran, and North Korea have made substantial inroads in using cryptocurrencies to escape Western sanctions. Belarus may be next in line to join the crypto bandwagon to cushion the effects of sanctions on the economy.
Also Read: Russia Explores Crypto Payments For Grain Exports To Dodge Sanctions
According to Statista, the number of cryptocurrency users in Belarus may breach the 855,000 mark by 2026. The current need for expanding crypto use is propelled by economic challenges. However, Lushenko signed a rule exactly a year ago to ban crypto sales and purchases from non-Belarusian exchanges. What shape the new regulations take is yet to be seen.
