Russia is currently immersed in economic sanctions from both the UK and the US as the countries are trying to condemn Russia for the recent invasive attacks on Ukraine. Ever since these sanctions have been flooding in Russia, the country has been making all efforts to increase its revenue.
Well, according to the reports of current crypto market news, Russia has managed to find a way to increase its revenue and it will be through the most expensive cryptocurrency in the world, Bitcoin.
According to reports, Russia has been scrambling all over to find different ways with the help of which they will be able to increase their revenue. Apparently, Russia has floated a possibility of allowing different countries such as Turkey and China to pay for the energy resources via Bitcoin.
This announcement was made by the energy chief of the Russian Federation, Pavel Zavalny. He said that ‘friendly countries’ such as Turkey and China would be able to make payments for gas and oil from Russia via Bitcoin. He also mentioned that they had other sources to make the payment such as Rubles, Lira, Yuan, or even Bitcoin or BTC. They didn’t have to make the payments in standard US dollars.
This specific move made by Russia goes on to show that the country has been trying very hard to make sure that its revenue is intact even after all the different economic sanctions that are being imposed on Russia by the US and the UK.
Russia To Make Plans for Changing Settlement Currencies With Turkey and China
According to Russian news media RBC, Chairman of the State Duma Committee on Energy Zavalny stated at a Mar. 24 press conference that he and representatives from China and Turkey have been discussing changes to preferred settlement currencies for its biggest export.
“We have been proposing to China for a long time to switch to settlements in national currencies of rubles and yuan. With Turkey, it will be lira and rubles. The set of currencies can be different, and this is normal practice. If there are Bitcoins, we will trade Bitcoins.”
He further stated that “unfriendly countries” could pay for their oil in Rubles or gold. However, it is not clear whether Russia can change the terms of existing contracts with countries that pay in Euros or USD.
Russia has been exploring ways it can circumvent international economic sanctions levied against it for invading Ukraine. Russian banks have been removed from the SWIFT system to prevent them from settling cross-border payments, and most businesses have been prohibited from dealing with Russia, except for the oil and gas trade.
Energy is the single most important commodity that Russia exports — and is a key energy source in Europe and other countries they are finding difficult to replace. According to Reuters, the oil and gas trade provided $119 billion in revenue for Russia in 2021.
Including electricity, kerosene, coal, and natural gas, the energy trade accounted for 53.8% of Russia’s total $388.4 billion in 2021 exports according to Russia Briefing.
According to current crypto market news, it appears that the crypto markets have reacted positively to the news of an expanded international use case for BTC. Bitcoin is up 2.5% over the past day and is now approaching 30-day highs trading at $43,917 according to CoinGecko.
The CEO Larry Fink of Blackrock, the world’s largest asset manager, maybe watching his prediction of a new digital payment system come to fruition before his eyes. Fink wrote in a letter to shareholders on the 24th of March, stating that global political instability could pave the way for nations to adopt digital currencies as international settlement tools.
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