Recently, Russia was designated as a high-income country by the World Bank, sparking discussions about the role of Bitcoin (BTC) in this achievement.
Economic progress in the country, attributed to a significant increase in Gross Domestic Product (GDP) per capita by 11.2% in the past year, led to its elevation to the status of a higher-income country.
This growth was supported by substantial increases in trade (+6.8%), the financial sector (+8.7%), and construction (+6.6%). These factors contributed to a 3.6% increase in real GDP and a 10.9% increase in nominal GDP.
Despite facing strict Western sanctions, Russia has become the fourth largest economy in the world by purchasing power parity, now on par with leading Western countries such as the USA and those in Western Europe that imposed sanctions on it due to the conflict in Ukraine.
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Meanwhile, Ukraine also experienced economic improvement, transitioning from a lower-income country to a higher-income country according to World Bank data.
Notably, amidst these sanctions, Russia is showing increasing interest in cryptocurrencies. Discussions among officials, including the Minister of Industry and Trade Denis Manturov, indicate a forthcoming legalization of cryptocurrencies for payment purposes, alongside ongoing efforts for their effective regulation.
Furthermore, Russia’s participation in the BRICS group underscores its pursuit of alternative currencies for international settlements that could potentially challenge the dominance of the US dollar.
Bitcoin is becoming a topic of particular interest within BRICS discussions aimed at reducing reliance on traditional fiat currencies.
