Main Points :
- Belarus has seen $1.7 billion in external payments via cryptocurrency exchanges in the first seven months of 2025, with projections of $3 billion by end-of-year.
- The government is pushing banks to expand crypto payments, adopt tokenization, use smart contracts, QR code and instant payment systems, biometric ID, and AI to modernize the infrastructure.
- Regulatory steps include restricting personal crypto trades outside Belarus-registered exchanges, tightening oversight, and balancing incentives for innovation with financial stability concerns.
- User penetration (crypto ownership/use) is forecast to be nearly 9.6 % of the population (≈ 855,000 people) by 2026.
- Belarus aims to build its resilience under Western sanctions by digitizing trade and payments, minimizing intermediaries and increasing transparency.
1. Sanctions and the Crypto Surge
Belarus’s increased use of cryptocurrency for external payments is primarily being driven by the pressure of Western sanctions. As traditional trade channels close off or become riskier, businesses and the government are looking for alternatives. To this end, President Alexander Lukashenko has instructed both central and commercial banks to accelerate the adoption of digital tokens and newer payment systems.
In 2025’s first seven months, Belarus witnessed $1.7 billion worth of external payments mediated through crypto exchanges, and Lukashenko estimates this could nearly double to $3 billion by the end of the year. Such a shift suggests that crypto is not just an underground or speculative asset but is increasingly being used operationally for cross-border trade.
2. Infrastructure: Payments, Tokenization, and Digital Tools
To support this surge, Belarus is stepping up on multiple fronts:
- Tokenization and smart contracts are being promoted to reduce dependence on intermediaries, automate enforceable conditions, and improve the efficiency and security of transactions.
- Banks are being ordered to adopt QR-code payments, facilitated by platforms like ERIP, along with plans for an instant payment system to be rolled out by the end of 2025.
- Emphasis is also being placed on biometric identification (ID), artificial intelligence (AI) technologies, and the development of domestic IT firms to reduce reliance on foreign tech suppliers.
These moves are designed to modernize payment infrastructure, reduce cost and delays, increase transparency, and maintain the functionality of commerce despite external pressures.
3. Regulation, Risks, and Legal Structure
Belarus has had regulatory frameworks for crypto for several years. Decree No. 8 (2017) legalized aspects like smart contracts, mining, and crypto exchange operations, especially under special zones such as the Hi-Tech Park (HTP).
More recently, new rules restrict individuals from buying or trading cryptocurrency outside of state-recognized exchanges. The government is pushing for clearer oversight, transparency, and effective supervision to guard against risks like volatility, capital flight, money laundering, or macroeconomic instability.
Some experts warn of contradictions: while Belarus seeks to be a crypto-friendly hub to attract investment, too much control or regulatory overreach may stifle innovation. Also, there’s concern about whether the banking sector and regulatory bodies have the capacity to enforce rules and monitor complex crypto flows.
4. Adoption Rates and User Penetration
By 2026, it is projected that over 855,000 users in Belarus—about 9.57 % of the population (≈9.1 million)—will be active in cryptocurrency.
This indicates that crypto is not a fringe phenomenon in Belarus but moving toward a more significant part of everyday economic activity. The growth in transaction volumes and user base suggests rising comfort and utility among businesses and individuals.
5. Comparative & Global Context
According to the 2025 Chainalysis Global Crypto Adoption Index, Belarus is ranked 17th overall and 9th when adjusted for population in terms of crypto adoption.
Regionally, Belarus’ strategy aligns with trends in other countries adapting to sanctions or financial isolation (or risk thereof), where cryptocurrencies and alternative digital payment systems are gaining ground.
Total Picture & Recent Moves
Putting together the data and policies:
- Belarus is consciously using crypto and blockchain tools as part of its toolkit to navigate a constrained international financial environment.
- The infrastructure is being upgraded: payments, exchanges, regulations, identity tools, and domestic tech capacity are all being enhanced.
- There is both opportunity—for companies, fintechs, startups, and service providers—and risk—regulatory uncertainty, volatility, oversight capacity, reputational risk.
Conclusion & Implications for Practitioners
Belarus provides a compelling case study of how a country under sanctions can lean on crypto technology to maintain external trade, modernize its payments infrastructure, and attempt to preserve economic sovereignty. For those seeking new assets or projects to work with or invest in, Belarus represents both a high-potential zone and one with heightened political, regulatory, and market risk.
If you are exploring:
- Crypto projects focused on cross-border payments, tokenization platforms, smart contracts, DeFi solutions tailored to compliance, or identity/biometrics tools, Belarus could be fertile ground.
- But be very aware of compliance risk—sanctions laws, AML/KYC, possible political disruption.
- Regulatory clarity will be a key differentiator: projects that can work transparently, in cooperation with regulatory authorities, will likely fare better.
