After being hit with multiple strict sanctions due to the invasion of Ukraine, Russia is now considering accepting Bitcoin as payment for its oil and gas exports.
Using crypto to evade sanctions
In a press conference on Thursday 25th, Pavel Zavalny, the chairman of the Russian State Duma Energy Commission, revealed that Russia could soon allow “friendly” countries such as China and Turkey to pay for oil and gas with Bitcoin in addition to their local currencies. .
Translated comments from the conference on video read;
“We have long proposed China to switch to payments in national currencies for rubles and yuan. With Turkey it will be lira and rubles. You can also trade bitcoins.”
However, Russian President Vladimir Putin stated earlier this week that he wants countries deemed “unfriendly” to buy Russian gas using the ruble, Russia’s official currency.
Bitcoin jumps in response to the news
The news saw Bitcoin continue a three-day winning streak as the largest cryptocurrency in the market gained 4% and peaked at $44,215. The last time Bitcoin traded above $44k was on March 3.
The 24-hour price chart for Bitcoin (BTC). Source: Trading Display
Bitcoin is now up 9% in value in the past seven days as the crypto market continues to make a comeback from last month’s losses. As a result, the global crypto market cap has also recovered $2 trillion for the first time since mid-February.
On the other hand
Global crypto exchanges like Coinbase, Binance, Huobi, KuCoin, Bybit and Whitebit are under pressure from governments to limit their services in Russia
Why should you be concerned?
BlackRock CEO Larry Fink claims the Russia-Ukraine crisis could accelerate the adoption of digital currencies.
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