Lukashenko Pressures Banks to Embrace Crypto
Belarusian President Alexander Lukashenko is calling on the country’s banks to expand their use of cryptocurrencies, as Western sanctions continue to strain the national economy. Speaking to the heads of the central and commercial banks, Lukashenko admitted that digital assets are becoming increasingly important in facilitating payments.
The remarks followed his recent push for lawmakers to establish transparent rules for the country’s crypto market, amid a sharp decline in exports due to EU and U.S. sanctions tied to Belarus’s support for Russia’s invasion of Ukraine.
Payments via Crypto Exchanges Surge
Lukashenko highlighted the rapid rise of crypto transactions, noting that Belarusian exchanges such as Binance, OKX, and KuCoin are poised to double external payments by year’s end.
The growth comes as the number of crypto users in Belarus is projected to surpass 855,000 by 2026, representing nearly 10% of the population, according to Statista.
Digital Payments and Financial Technology Push
Alongside crypto adoption, Lukashenko urged banks to expand digital payments infrastructure. He pointed to recent initiatives such as QR code payments, already rolled out by VTB Bank Belarus via the ERIP system, and insisted that the country must launch an instant payment system by the end of the year.
He also called for a national digital strategy, which would include the integration of biometric technologies, the establishment of a dedicated IT company to reduce reliance on foreign providers, and the adoption of AI-driven financial solutions.
Mixed Crypto Attitude in Belarus
Belarus has had a complicated relationship with cryptocurrencies. The country legalized crypto transactions, mining, and exchanges in 2018, presenting itself as a potential hub for digital assets. Yet in September 2023, Lukashenko signed a law banning peer-to-peer transactions outside Belarusian exchanges, tightening state control over the sector.
Earlier, in March 2023, Lukashenko also instructed his energy minister to explore expanding crypto mining, citing Belarus’s surplus electricity supply. These moves illustrate the country’s pragmatic but inconsistent stance—balancing between promoting digital finance and tightening oversight.
Sanctions Drive Crypto Reliance
With sanctions severely limiting Belarus’s access to international trade and finance, crypto has become a tool for bypassing restrictions. Its decentralized nature has long been leveraged by sanctioned states such as Russia and North Korea, and Belarus now appears to be taking the same path more openly.
By pushing banks toward greater crypto integration, Lukashenko is signaling that digital assets will play a central role in keeping the Belarusian economy afloat under mounting Western pressure.
