In a bold move that could reshape global finance, El Salvador has proposed using cryptocurrency for trade with Russia. This comes on the heels of Russia’s recent decision to allow crypto for international transactions, a move aimed at circumventing Western sanctions.
The Central American nation, a pioneer in Bitcoin adoption, is seeking to distance itself from the US dollar, its official currency, and explore alternative payment systems. According to Russian diplomat Alexander Ilyukhin, this shift could significantly streamline trade between the two countries.
“There are difficulties in settlements between our countries since the dollar is the official currency in El Salvador,” Ilyukhin told Russian media. He also noted that El Salvador has been facing “serious pressure from the West” for its proposed crypto-based trade.
The potential for increased cooperation between Russia and El Salvador is significant. Bilateral trade has surged in recent years, reaching $20 million in 2020 from a mere $4 million in 2018. The use of cryptocurrency could further accelerate this growth.
El Salvador’s embrace of crypto aligns with the broader goals of the BRICS group of nations – Brazil, Russia, India, China, and South Africa – which have been seeking to reduce reliance on the US dollar. By adopting crypto for trade, El Salvador could position itself as a key player in this emerging economic bloc.
Also Read: Cathie Wood Bullish on El Salvador’s Bitcoin Bet, Predicts 10x GDP Growth
Russia’s decision to legalize crypto for international trade marks a significant step in the country’s efforts to build a more independent financial system. It also underscores the growing global acceptance of cryptocurrencies as a viable alternative to traditional fiat currencies.
As the world watches, the potential implications of this partnership between El Salvador and Russia are far-reaching. It could accelerate the trend towards de-dollarization and reshape the global financial landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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