From now on there is a possibility that Russia accepts Bitcoin for oil and gas payments from “friendly nations” like China and Turkey. The Russian Federation’s energy chief, Pavel Zavalny stated that they may pay for energy in the Russian Ruble, Chinese Yuan, Turkish Lira, or even Bitcoin (BTC), rather than the conventional US dollar.
Russia accepts Bitcoin and other currencies
The Chairman of the State Duma Committee on Energy Pavel Zavalny announced at a Mar. 24 press conference that he has been in talks with representatives from China and Turkey about how to modify its preferred currency for its major export. According to the statement, there is a possibility that Russia accepts Bitcoin as payment for its gas and oil exports.
“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.”
Pavel Zavalny stated that unfriendly countries might pay for their oil in Rubles or gold. However, it’s unclear if Russia has the authority to alter existing agreements with nations that pay in Euros or US dollars.
Russia is now demanding that Europe pay for gas in rubles.
Europe gets 40% of its gas from Russia. That’s 200-800 million euros per day.
Putin is basically saying: you want to play sanctions? Either pay up in rubles or freeze.
— Richard Medhurst (@richimedhurst) March 23, 2022
Russia has been looking for ways to get around international economic sanctions that have been levied against it as a result of its aggression against Ukraine. To prevent Russian banks from paying out cross-border transactions, the SWIFT network has been disabled, and most firms are no longer permitted to do business with Russia, excluding oil and gas commerce.
Russia’s energy exports are the most important goods it sells, and they play a significant role in Europe and other regions where replacements are tough to find. The energy trade, which includes electricity, kerosene, coal, and natural gas, accounted for 53.8% of Russia’s $388.4 billion in 2021 exports.
The announcement of expanded worldwide usefulness for Bitcoin appears to have buoyed the crypto market.
Bitcoin has gained 2.69% in the last 24 hours and is presently trading at $43,948 according to TradingView.