President Lukashenko orders the expansion of cryptocurrency use as sanctions weigh on the national economy.
Belarusian President Alexander Lukashenko has stepped up pressure on the national banking system to expand the use of digital assets in order to reduce the impact of economic sanctions on the country.
During a meeting with central bank leaders and commercial lenders, Lukashenko emphasized the urgency of expanding the use of digital assets. The state-run Belarusian Telegraph Agency reported the leader as saying:
“Over the past five years, the national economy, and with it the Belarusian banking sector, have faced unprecedented challenges. The government and the National Bank have been given corresponding instructions. Now, act.”
According to the President’s projections, exchanges operating in Belarus could double external payments by the end of the year. Lukashenko stated that “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.”
The penetration of digital assets in the country is steadily increasing: Statista forecasts that cryptocurrency users will surpass 855,000 by 2026, representing 9.57% of the total population of 9.1 million.
Belarus’s approach to digital assets has shown a degree of ambivalence over time. In September 2024, the government enacted a law banning citizens from buying and selling cryptocurrencies outside authorized national exchanges.
However, in 2018 the country legalized cryptocurrency transactions, allowing sales, exchanges, and mining activities. Later, in the summer of 2023, the Ministry worked on a potential ban on peer-to-peer transactions for Bitcoin and other digital currencies.
Last March, the Belarusian government also promoted the development of the mining industry, taking advantage of the country’s surplus electricity. This initiative is part of a broader strategy to diversify national revenue sources and reduce the impact of international sanctions.
