The Belarusian President Alexander Lukashenko has classified cryptocurrencies as one of the possible paths for the world to wean itself off dependence on the US dollar. 

The president’s remarks came while he was at a government meeting held to discuss the performance of the Belarusian Nuclear Power Plant, rising electricity consumption and proposals for new nuclear capacities.

Lukashenko’s faith in crypto as a way to escape dollar dominance 

The president has asked for a report on the measures taken to increase electricity consumption, their results, and proposals for the further development of the electric power industry and related sectors.

In his comments, Lukashenko directly highlighted the global de-dollarization efforts, calling it a “global problem” and identifying things like cryptocurrency mining as potential solutions.  “The focus is on the prospects for utilizing existing and new capacities,” the head of state said. 

In response to fears linked to cryptocurrency mining, especially how unstable it can be, the president implied it was a sacrifice worth making as the world struggles to distance itself from the dollar. “This process will intensify,” Lukashenko said. “So why are we so worried? Some volatility… Well, there probably will be. But nothing ventured, nothing gained.”

Belarus, the nation Lukashenko presides over, is closely allied with Russia and is one of the countries serious about fighting the dollar’s dominance. It has actively de-dollarized trade, reduced its USD holdings, and is currently exploring alternatives like BRICS payment systems, and if Lukashenko’s comments have anything to do with it, crypto. 

Lukashenko has always encouraged mining in Belarus

Lukashenko’s comments on mining come weeks after he urged his country’s regulators to finalize long-delayed rules for cryptocurrencies and digital tokens in September. 

Lukashenko had complained at the time that his 2023 instructions to craft comprehensive regulations had yet to produce approved documents and called for “transparent rules of the game” and new oversight mechanisms, without which he believes that Belarus will lag behind in global crypto adoption.

The president also highlighted how technology seemed to be advancing faster than legislation, thereby creating pressure for new branches of law. He instructed regulators and the Hi-Tech Park — the special economic zone that oversees much of Belarus’ digital economy — to split responsibilities and dedicate their expertise to drafting rules that would reassure businesses at home and abroad they could “work calmly in our digital haven.”

Those comments came months after Lukashenko publicly considered another way to expand Belarus’ role in crypto. In March, he raised the possibility of harnessing the country’s excess electricity for digital asset mining. “Look at this mining. More and more people are turning to me. If it is profitable for us, let’s do it,” he reportedly told his newly appointed energy minister.

Lukashenko cited developments in Washington, calling attention to the fact that the White House had floated the concept of a strategic crypto reserve. “You see the path the world is going. And especially the largest economy in the world. They announced yesterday that they will keep [a crypto] reserve,” he said.

Belarus would not be the first country to consider exploring such a path. Countries like Bhutan and El Salvador have embraced Bitcoin mining and BTC as a strategic reserve asset. Belarus could benefit greatly because of it its power surplus, but regulators have to give the green light.

Already, decree No. 8 “On the Development of the Digital Economy”, which was signed on December 21, 2017, has established a framework for digital assets to thrive in Belarus under the Hi-Tech Park umbrella, and this has attracted foreign blockchain startups.

The decree formally recognized digital tokens in Belarusian law and created a legal basis for their issuance, circulation, and exchange. 

The decree also offered tax exemptions on digital asset transactions for companies and individuals operating within HTP and recognized the validity of smart contracts. All those measures have positioned Belarus as one of the earliest jurisdictions to adopt a state-backed framework for cryptocurrencies and blockchain services.

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