Russia Adopts Bitcoin and Ethereum for Oil Trade with BRICS Nations to Evade Sanctions

The post Russia Adopts Bitcoin and Ethereum for Oil Trade with BRICS Nations to Evade Sanctions appeared first on Coinpedia Fintech News

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took the oath of office earlier this year, the administration has put in place efforts to reset the bilateral relations with Russia. Furthermore, the Kremlin has pressured the war in Ukraine to force the Western countries to lift their sanctions.

However, Russia has heavily leaned towards the members of the BRICS nation – led by China, and India – to enhance its international trade. The desire to dethrone the U.S. dollar as a global reserve currency has kept the BRICS movement intact.

Russia’s Oil Trade Revolution Powered by Crypto Assets

According to a report by Reuters, Russia is using crypto assets in its oil trade with China and India to navigate the Western sanctions. According to close sources on the matter, some Russian oil companies are using Bitcoin (BTC), Ethereum (ETH), and stablecoins to streamline the international forex trades of the Chinese Yuan, Indian Rupees, and Russian Roubles. 

The announcement follows a recent move by the U.S. DoJ to seize the Russian Garantex exchange, for allegedly enabling money laundering and violating sanctions. Earlier this week, police in the Indian state of Kerala arrested Aleksej Besciokov for his involvement in the Garantex exchange and soon will face the charges in the United States.

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Market Implication

The use of crypto assets to facilitate the Russian oil trade business will have a profound effect on their market outlook. More countries that have been sanctioned by the United States and Western countries will follow in the same direction. 

Moreover, cryptocurrencies offer a seamless transfer of value 24/7 365 days a year compared to the rigid traditional banking sector. Consequently, the rising demand for Bitcoin and Ethereum will fuel the underlying macro-bullish outlook. Already, the United States has signaled the adoption of Bitcoin, Ethereum, and other crypto assets in its strategic crypto reserve.