Lukashenko Bets on Crypto to Navigate Sanctions and Secure Economic Independence

Belarusian President Aleksandr Lukashenko has called on the country’s banking sector to expand the use of cryptocurrencies, positioning digital assets as a key tool for economic resilience amid growing international sanctions. At a recent meeting with the heads of Belarus’ National Bank and commercial banks, Lukashenko emphasized the increasing role of crypto-based transactions in facilitating external payments and reducing reliance on traditional financial intermediaries.

According to official data, the volume of external payments processed through cryptocurrency exchanges in Belarus reached $1.7 billion in the first seven months of 2025. Lukashenko noted that, based on current trends, this figure could potentially double to $3 billion by the end of the year. This surge in crypto activity comes as the country’s economy faces mounting challenges, including a decline in exports and economic contraction due to EU and U.S. sanctions related to its support for Russia’s actions in Ukraine.

The Belarusian leader highlighted the need for transparency and effective regulation in the crypto market, stating that the government and the National Bank have been given clear directives to act accordingly. “The government and the National Bank have been given corresponding instructions. Now, act,” he said. This directive follows a recent legislative move in September 2024, which restricted individuals from trading crypto outside of licensed Belarusian exchanges.

In addition to promoting crypto adoption, Lukashenko urged banks to accelerate the rollout of digital payment systems, including the implementation of a QR-based instant payment system by year-end. VTB Bank Belarus, a Russian state-owned bank operating in the country, has already begun testing QR code-linked transactions through its ERIP system. The president also emphasized the importance of integrating biometric technologies and artificial intelligence in the country’s broader digitalization strategy.

Belarus has had a complex relationship with cryptocurrency over the years. While it legalized crypto transactions in 2018, the government has at times imposed restrictions, such as banning peer-to-peer crypto exchanges in 2023. However, recent moves under Lukashenko suggest a strategic shift toward leveraging crypto as a means to circumvent financial restrictions and maintain economic activity. The country’s crypto exchanges, including Binance, OKX, and KuCoin, are reportedly playing a significant role in this transition.

According to projections by Statista, the number of crypto users in Belarus is expected to exceed 855,000 by 2026, representing a user penetration rate of 9.57%. This growing user base reflects the increasing acceptance of digital assets within the population and signals a broader shift in the country’s financial landscape.