Bitcoin is rising after reports from Russia considering accepting the cryptocurrency for the export of its natural resources, rising more than 5% on the day and 17% in the past 10 days after pushing more than $44,000. BTC’s market valuation has also surged $20 billion and soared above $835 billion.
This resurgence comes after Pavel Zavalny, the chairman of the Energy Committee of the State Duma of the Russian Federation, said that Russia was open to accepting Bitcoin alongside currency by its allies in purchasing its natural resources.
“When it comes to our ‘friendly’ countries, such as China or Turkey, who do not pressure us, we have been offering them for a while to transfer payments to national currencies, such as rubles and yuan,” Zavalny said during a meeting. conference on Thursday. “With Turkey it can be lira and rubles. So there can be different currencies, which is standard practice. If they want bitcoin, we trade bitcoin,” he added.
Zavalny’s statement follows President Vladimir Putin’s announcement that Russia will stop accepting any other form of currency from its “unfriendly” nations as payment for natural resources forcing them to pay in the ruble.
Russia, which continues to be a major exporter of energy resources to European countries, is subject to perpetual sanctions, with NATO countries considering completely ceasing imports of energy resources from the country. This month, US President Biden banned Russian oil imports and investments in Russia’s energy sector.
The energy commission also stated that Russia was willing to accept gold from “unfriendly” countries, which Zalvany said was beneficial for them given the prevailing conditions.
“When we barter with western countries, they have to pay in hard money … and hard money is gold, or they have to pay in currencies that are convenient for us,” Zavalny added.
While the adoption of “hard money and the ruble” is the best option for Russia as it seeks to save the ruble’s value, today’s announcement to be open to accepting Bitcoin seems to have caught many off guard.
Despite Russia previously taking a negative stance on bitcoin and Putin stating that he did not believe bitcoin could be used for oil trading during last year’s energy week, the Kremlin has downgraded its wall-garden stance on the sector, with the Treasury Department saying. even suggests they will regulate bitcoin and cryptocurrencies rather than ban them. So, today’s announcement is an important step in seeing how cryptocurrencies and especially bitcoin will emerge as crypto payments become borderless.