In 2025, the economic landscape in Belarus is facing significant challenges due to ongoing sanctions, prompting President Alexander Lukashenko to advocate for an expanded role of cryptocurrency within the nation’s banking sector. During a recent meeting with the heads of the central and commercial banks, Lukashenko emphasized the necessity for banks to embrace digital currencies to mitigate the adverse effects of these sanctions on the economy. The Belarusian Telegraph Agency reported on this discussion, highlighting Lukashenko’s call for action to adapt to the evolving financial environment.
“Over the past five years, the national economy, and with it the Belarusian banking sector, have faced unprecedented challenges,” Lukashenko stated. He instructed the government and the National Bank to implement measures that would enhance the integration of cryptocurrencies into the financial system. This push aligns with Lukashenko’s previous directives to lawmakers to establish clear regulations governing the cryptocurrency market, as Belarus deals with declining economic performance due to shrinking exports amid extensive sanctions from the European Union and the United States in response to Belarus’s support of Russia’s invasion of Ukraine.
Cryptocurrencies, with their decentralized and anonymous attributes, have emerged as tools for nations such as Russia and North Korea to navigate sanctions and facilitate trade. Belarus is also witnessing a growing interest in digital currencies, with projections indicating that the number of crypto users in the country could exceed 855,000 by 2026, representing approximately 9.57% of its 9.1 million population, according to data from Statista.
Lukashenko noted that exchanges operating within Belarus, including Binance, OKX, and KuCoin, are on track to potentially double their external payments by the end of the year. “Today, cryptocurrency-based transactions are more active than ever, and their role in facilitating payments is growing,” he remarked, underscoring the importance of adapting to this digital economy.
Last year, Lukashenko enacted legislation prohibiting individuals from conducting cryptocurrency transactions outside of Belarusian exchanges. He has also urged banking leaders to promote digital payment systems, starting with QR code integration and aiming to establish an instant payment system by year-end. VTB Bank Belarus, a state-owned Russian financial institution, has already begun offering QR code payment options linked to the online payment system ERIP.
In addition, Lukashenko stressed the need for Belarus to adopt emerging technologies, including biometric systems, and to create a dedicated IT company to lessen reliance on foreign service providers, while also integrating artificial intelligence solutions into the financial sector. “Banks must try to make the most of modern technology. Digitalization is not an end in itself; it must deliver tangible economic results,” he asserted.
Belarus’s approach toward cryptocurrency has been varied. Earlier in 2023, Lukashenko tasked his energy minister with developing the nation’s cryptocurrency mining sector, capitalizing on its surplus electricity. However, there have also been discussions to potentially restrict peer-to-peer cryptocurrency transactions, particularly concerning Bitcoin (BTC). Despite these mixed signals, Belarus has maintained a legal framework for cryptocurrency transactions since 2018, allowing for trading, exchanging, and mining activities.
As the situation develops, the emphasis on crypto adoption may play a crucial role in shaping Belarus’s economic future amidst the ongoing challenges posed by international sanctions.
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