Lukashenko urges Belarusian banks to use cryptocurrencies against sanctions

• Belarus wants cryptocurrency-backed banks
• Lukashenko advocates digital tokens for international payments
• Government accelerates rules for exchanges and crypto mining

Belarusian President Alexander Lukashenko reinforced his call for national banks to expand the use of cryptocurrencies as an alternative to the impact of economic sanctions imposed by Western countries. During a meeting with heads of the Central Bank and commercial institutions, he emphasized that digital tokens should play a greater role in both international payments and domestic transactions.

Lukashenko argued that cryptocurrencies can help the country face the "unprecedented challenges" the local economy has faced for the past five years. Since 2020, the European Union, the United States, the United Kingdom, and Canada intensified measures that hit strategic sectors like energy, defense, finance, and transportation. "They waited for us to fall to our knees. But today we can say (perhaps even with confidence): we are not bankrupt, we made it," stated the president.

In the government's view, adopting cryptocurrencies offers advantages such as reduced dependence on intermediaries, greater user control over assets, and the possibility of automation through smart contracts. Lukashenko added that local cryptocurrency exchanges are "on track to potentially double external payments by the end of the year," urging banks to support this process.

The country has recognized cryptocurrency transactions since 2018, but the rise of international restrictions has accelerated the search for solutions. Cases like Russia, which resorted to crypto settlements after its connections to global financial networks were blocked, reinforce the example for Minsk.

Last week, the president called for clearer oversight mechanisms for the sector, after data showed that nearly half of the funds sent by Belarusian investors to foreign exchanges are not returned. He demanded that lawmakers establish "transparent rules of the game and control mechanisms" to protect investors and economic stability.

The previous year, a law had already been passed requiring cryptocurrency trading to take place only on domestic exchanges. Furthermore, Lukashenko once again advocated for the creation of a state-backed cryptocurrency mining industry, leveraging Belarus's surplus electricity as the sector's energy base.