Amid increasing Western sanctions, Belarusian President Alexander Lukashenko has instructed the country's commercial banks to enhance their use of digital assets. This initiative aims to mitigate the economic impact of these sanctions. Lukashenko highlighted that cryptocurrency transactions reached $1.7 billion in the first seven months of the year and are projected to hit $3 billion by the end of the year. The focus on tokenization in the financial sector is intended to minimize intermediaries and automate transactions, improving user control over assets. The push for digitalization is positioned as a practical measure to sustain external payments and avoid the constraints imposed by sanctions, which have been in place since the controversial elections of 2020. As Belarus seeks to navigate its current economic challenges, this strategy parallels trends observed in other Russia-aligned states, where crypto use has surged due to similar restrictions. The EU sanctions specifically target individuals and entities associated with the Lukashenko regime, restricting financial operations and imposing powerful economic barriers.

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