DailySun
President Alexander Lukashenko has urged banking leaders in Belarus to promote the use of cryptocurrencies and advanced digital payment methods, emphasizing that the country’s outdated financial systems fail to support its economy, which is suffering from sanctions.
Summary
- President Alexander Lukashenko has called for increased integration of cryptocurrencies within local banks.
- Digital currencies are viewed as a way to relieve economic pressures from Western sanctions.
In a meeting with leaders of Belarus’ central and commercial banks, Lukashenko reiterated the need for digital currencies to play a vital role in cross-border transactions and domestic financial operations, as reported by the Belarusian Telegraph Agency.
Lukashenko believes that cryptocurrencies could be crucial in tackling the “unprecedented challenges” confronting the nation’s economy over the past five years.
Since 2020, countries such as the EU, US, UK, and Canada have imposed severe sanctions on Belarus, affecting key sectors like finance, defense, energy, and transportation.
“They predicted our collapse. Yet today, we can proudly declare: we are not bankrupt; we have persevered,” Lukashenko remarked.
Like other countries grappling with sanctions, Belarus is turning to cryptocurrencies as a solution to restricted access to global banking and trade. For instance, Russia has been exploring crypto-based settlement systems after losing access to major international financial networks following its invasion of Ukraine.
Since 2018, cryptocurrency transactions have been legalized in Belarus, making them a viable option for individuals and businesses facing difficulties with conventional banking.
Lukashenko contends that cryptocurrencies could enable Belarus to reduce its dependency on intermediaries, while also offering benefits such as automated transactions through smart contracts and granting users greater control over their assets.
He pointed out that Belarusian crypto exchanges are “on track to possibly double in external payments by the year’s conclusion,” encouraging banks to support what he described as a time when “cryptocurrency transactions are more dynamic than ever.”
“The government and the National Bank have been instructed accordingly. Now, it’s time to act.”
Belarus must expedite crypto regulations
Lukashenko’s recent request came just days after he directed his government to establish oversight mechanisms for cryptocurrencies, emphasizing that nearly half of the funds transferred by Belarusian investors to foreign crypto platforms do not return.
He called for lawmakers to create “transparent regulations and control mechanisms,” warning that the rapid evolution of digital finance outpaces current legal frameworks, and that failure to act could threaten both investor safety and national economic stability.
Last year, Lukashenko implemented a law prohibiting individuals from buying and selling crypto outside of local exchanges. He has also supported investigating other alternatives, such as developing a state-backed cryptocurrency mining industry to utilize Belarus’ excess electricity.
