Even though the Russia-Ukraine war has resulted in a lot of sanctions on Russia, they still have the upper hand in some ways. The fact that they are one of the largest oil and gas producers in the world gives them a definitive edge over energy supply. So, if those supplies aren’t exported, there will be a supply shortage, and prices will skyrocket. They are taking advantage of this situation and have been considering friendly countries to pay with Bitcoin while making things difficult for unfriendly nations.
Russia will accept Bitcoin for oil and gas exports
The Chief of energy of Russia has talked about the possibility of the nation accepting Bitcoin as a payment medium. They have been cut off from the SWIFT network, so this is the only option for them. But do note that this option will only be available to China, Turkey, and some other friendly countries maybe. Russia doesn’t need to be paid in the international standard of USD anymore, and the nation’s local currency they’re exporting to would work.
In fact, the Chairman of the State Duma Committee on Energy Zavalny said that they have been in talks with China for a long time to replace the US Dollar. It will be replaced by Rubles and Yuan, which are the currencies of their nation. And for Turkey, it will be Lira and Rubles. And if needed, they can trade Bitcoins as well.
Things will get difficult for unfriendly countries
For the US, Europe, and other unfriendly nations, things might get complicated as Russia says they won’t be accepting payments in Euros or USD. Europe gets 40% of its gas supply from Russia, which means they pay nearly 200-800 million Euros every day. So, if Russia says that they will accept payments only in Rubles or Gold, it’s them revolting because of the sanctions. However, it’s difficult to say whether Russia can change existing contracts.
Now, it will be essential to see how these nations react to the steps taken by Russia. Do they succumb to their requirements and remove the sanctions on the nation or pay in required denominations and get natural gas? Let’s see.
What are your thoughts as Russia says it will accept Bitcoin for oil and gas? And do you think that the unfriendly nations will stop importing from Russia or pay in Gold or Rubles? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Goldman Sachs adds cryptocurrencies and Metaverse to its homepage.
