Belarusian President Alexander Lukashenko has issued a directive urging the nation's banking sector to significantly expand the use of cryptocurrencies and modern digital payment systems. This move comes as a strategic response to the economic pressure from sweeping Western sanctions imposed since 2020 by the EU, US, UK, and Canada targeting key sectors including finance, defense, energy, and transport.
During a meeting with heads of Belarus's central and commercial banks, Lukashenko emphasized that digital tokens must play a larger role in both cross-border payments and domestic financial operations. He stated that the country's outdated financial practices can no longer support its sanction-hit economy, and cryptocurrencies may be the answer to combating the "unprecedented challenges" faced over the past five years.
Cryptocurrency transactions have been legal in Belarus since 2018, providing a readily available option for citizens and businesses looking to bypass traditional banking hurdles. Lukashenko highlighted that Belarusian crypto exchanges are "on track to possibly double in external payments by the end of the year" and urged banks to support what he called a period where "cryptocurrency-based transactions are more active than ever."
The president's latest call follows an ultimatum issued less than a week earlier demanding cryptocurrency oversight mechanisms. This urgency stems from reports that nearly half of all funds sent by Belarusian investors to foreign crypto platforms fail to return. Lukashenko called for lawmakers to create "transparent rules of the game and mechanisms for control," warning that the rapid expansion of digital finance was outpacing existing laws.
Last year, Lukashenko passed a law banning individuals from buying and selling crypto outside of domestic exchanges. He has also advocated for developing a state-backed cryptocurrency mining industry to take advantage of Belarus's surplus electricity.