Recently, Russia was designated as a high-income country by the World Bank, sparking discussions about the role of Bitcoin (BTC) in this achievement.
Economic progress in the country, attributed to a significant increase in Gross Domestic Product (GDP) per capita by 11.2% over the past year, has elevated its status to that of a higher-income state. This growth was bolstered by substantial increases in trade (+6.8%), the financial sector (+8.7%), and construction (+6.6%), contributing to a 3.6% rise in real GDP and a 10.9% increase in nominal GDP.
Despite facing stringent Western sanctions, Russia has become the world’s fourth-largest economy by purchasing power parity, now on par with leading Western states like the USA and those in Western Europe, which imposed sanctions due to the conflict in Ukraine.
Meanwhile, Ukraine has also experienced economic improvement, transitioning from a lower- to a higher-income status according to World Bank data.
Notably, against the backdrop of these sanctions, Russia has shown increasing interest in cryptocurrencies. Discussions among officials, including Minister of Industry and Trade Denis Manturov, indicate impending legalization of cryptocurrencies for transactional purposes, alongside ongoing efforts for effective regulation.
Additionally, Russia’s participation in the BRICS group underscores its pursuit of alternative currencies for international transactions, potentially challenging the dominance of the US dollar.
Bitcoin has become a topic of particular interest within BRICS discussions aimed at reducing dependence on traditional fiat currencies.