Belarus Rushes To Expanded Crypto Usage Amid Economic Decline

Belarusian President Alexander Lukashenko is giving the nation’s banks the green light to broaden their use of cryptocurrencies as a way to bypass the impact of the global sanctions which has cause the nation's economy to decline.

Speaking at a meeting with heads of the central and commercial banks, Lukashenko urged immediate action to leverage digital tokens as strategic assets to stabilize and grow the financial sector, according to the state-run Belarusian Telegraph Agency.

“Over the past five years, the national economy, and with it the Belarusian banking sector, have faced unprecedented challenges. The government and the National Bank have been given corresponding instruction. Now Act."

His directive follows recent calls to legislators to create transparent regulatory frameworks for the crypto market, amid economic woes exacerbated by international sanctions tied to Belarus’s support of Russia during the Ukraine conflict.

Leveraging On Digital Assets as a Tool To Circumvent Sanctions

Cryptocurrencies, prized for their decentralized and pseudonymous nature, have been increasingly used by countries like Belarus, Russia, and North Korea to circumvent sanctions and facilitate cross-border trade.

Data indicates that approximately 855,000 people in Belarus—nearly 9.5% of the population are active crypto users, reflecting rapid adoption fueled by economic necessity and technology.

Lukashenko also predicted that the crypto transactions to potentially double this year, with exchanges like Binance, OKX and Kucoin to be a crucial component of the growth.

“In the seven months of this year, the volume of external payments through cryptocurrency exchanges amounted to $1.7 billion. According to experts estimated, it may reach $3 billion by the end of the year."

Lukashenko also pushed for accelerated expansion of digital payment infrastructures. He encouraged banks to modernize payment options, starting with implementing QR code payments widely, alongside plans to launch instant payment systems by the end of 2025.

For instance, VTB Bank Belarus has already integrated QR payments linked to the ERIP national payment system. Further, Lukashenko stressed the urgency of adopting biometric technologies, developing domestic IT capacities, and embracing artificial intelligence solutions to fortify digital transformation.

Contradictory Crypto Stance

Belarus has exhibited a complex stance on crypto: while promoting innovation, it also seeks tighter control. The government legalized cryptocurrency trading and mining under the Hi-Tech Park regulatory framework in 2017, offering tax incentives and operating as a tech hub for blockchain ventures.

However, recent regulatory steps include banning peer-to-peer crypto transactions outside regulated platforms, in line with efforts to prevent illicit activities and capital flight. The government’s evolving approach seeks to balance fostering blockchain innovation with securing financial stability and investor protection.

As sanctions pressure mount, Belarus is doubling down on digital finance as a path to economic resilience. By expanding cryptocurrency adoption, enforcing stricter regulatory oversight, and building robust digital payment ecosystems, Lukashenko aims to position Belarus as a regional blockchain and fintech leader—offering a regulated yet innovation-friendly environment for digital assets to thrive.

This strategic pivot will be closely watched amid a geopolitical backdrop that continues to challenge traditional financial channels and drive alternative finance modes.