Russia has turned to cryptocurrencies to promote oil trade with China and India, effectively bypassing the $192 billion oil trade imposed by Western sanctions, Reuters reportciting information familiar with this matter.
The country has been slowly entering the cryptocurrency space. Just this week, Bank of Russia submitted recommendations To create an experimental legal system (ELR) that lasts for three years, allowing “limited Russian investors” to conduct cryptocurrencies.
Reuters reported that some Russian oil companies use bitcoin, ether and stablecoins such as Tether (USDT) to convert payments of Chinese yuan and Indian rupee to rubles. These transactions are currently part of Russian oil trade.
Other approved countries, including Iran and Venezuelause cryptocurrencies to maintain trade while avoiding dependence on the US dollar (the major currency in the global oil market).
Russia has developed multiple payment systems to navigate sanctions, and cryptocurrencies are one of several tools used in the country. Reuters said fiat currencies remain the main method used in Russian oil trading, with other solutions including the use of currencies such as the United Arab Emirates Dirham.
The report also added that even with the lifting of sanctions, Russia may continue to use cryptocurrency in its oil industry, as it is seen as a convenient, flexible tool. Meanwhile, the country is currently seeking to bring its largest bank to Support digital ruble For retail and commercial use.
Russian Bank says ruble-backed central bank digital currencies can be used as Tools for sanctions Back to 2021.
Read more: U.S.-approved countries (such as Iran) are seriously inclined toward crypto: Chain Analysis
