El Salvador Proposes Bitcoin as Trading Currency with Russia

El Salvador has proposed using Bitcoin in its trade with Russia. This proactive approach comes in light of the cross-border trading sanctions against Russia and the need to circumvent the emergent financial constraints.

Russian Embassy’s Secretary Speaks On Trading With El Salvador

An interview with Alexander Ilyukhin, the Russian embassy’s first secretary and El Salvador’s head of office, revealed that trade with Russia was risky. The uncertainties in transactions between the two nations stemmed from El Salvador recognizing the U.S. dollar as its national currency. Hence, El Salvador proposed using Bitcoin as an alternative means of trading with Russia.

Unfortunately, while Bitcoin is legal tender in El Salvador, Russia does not recognize it or other cryptocurrencies as a means of payment. Consequently, Ilukhin noted that if trade must progress between both parties, the government must assess the possibilities of using other alternatives.

“Bitcoin is not widely used in our country, so we seek other ways to boost trade. The government of El Salvador is ready to continue economic cooperation with Russia.” Alexander Ilyukhin remarked.

El Salvador pioneered the adoption of Bitcoin as a national currency. President Nayib Bukele announced at the 2021 Bitcoin conference in Miami that it officially adopted Bitcoin as a legal tender in transactions within the country. However, many countries, including Russia, have yet to make this bold step.

Positive Angle

On a positive note, Russia is working on legalizing cryptocurrencies for international transactions. Despite its current ban on cryptocurrency payments, it is showing signs of potential change. Legislative changes are underway, with the Russian parliament passing two crypto-related bills in their first readings. These changes could pave the way for adopting digital assets, including Bitcoin, in international trade with trading partners like China, India, Turkey, and the UAE.

Notedly, the discussion of crypto as a currency for trade comes amid broader efforts to facilitate business between both countries. For tourism development, Ilyukhin underscored the critical importance of Russia's capability to make payments freely to different countries. This urgency suggests that finding a viable solution, such as cryptocurrencies, is crucial for the future of international trade.

Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence before making any trading or investment decisions.

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