Belarusian President Alexander Lukashenko has instructed the country's banking sector to expand cryptocurrency usage as a strategic response to Western sanctions. During a meeting with central and commercial bank heads, Lukashenko emphasized that digital tokens are crucial for sustaining international trade and finance amid economic challenges caused by five years of sanctions from the European Union and United States.
Belarus has processed $1.7 billion in external payments through cryptocurrency exchanges in the first seven months of 2025, with experts projecting this could reach $3 billion by year-end. Major exchanges including Binance, OKX, and KuCoin are operating in the country, facilitating this growth. Lukashenko acknowledged that sanctions have caused unprecedented challenges to the national economy and banking sector, severely damaging export industries and forcing businesses to seek alternative payment methods.
The president also pushed for clearer cryptocurrency regulations, urging lawmakers to establish comprehensive laws for the sector. Additionally, he advocated for adopting digital payment methods like QR codes and instant payment infrastructure to streamline financial transactions and reduce dependency on intermediaries through technologies like smart contracts.
Cryptocurrency adoption in Belarus is growing significantly, with projections indicating over 855,000 users (approximately 10% of the population) by 2026. This builds on previous pro-crypto measures, including the 2017 Digital Economy Decree that established Belarus as a crypto-friendly hub with tax breaks and the Hi-Tech Park framework.