El Salvador proposes crypto payments for trade with Russia.
El Salvador apparently proposed to Russia the use of digital currency as a medium of trade between the two countries. The pro-Bitcoin country is also considering seeking for BRICS membership to enhance its economic development.
The Latin American country apparently proposed to Russia the use of Bitcoin as a medium of exchange between the two countries. Alexander Ilyukhin, the head of the Russian office in El Salvador and the first secretary of the Russian embassy in Nicaragua, verified El Salvador’s proposal during an interview with a local news station.
El Salvador’s official currency restricts trade with Russia.
Ilyukhin added that Latin American countries utilise the US dollar as their official currency, which is currently sanctioned in Russia.
“We are having trouble with computations because the official currency in El Salvador is the US dollar. As an alternative, El Salvador proposes using cryptocurrencies in trade operations.”
-Ilyukhin
The envoy also told the site that the South American country’s idea would be tough to implement because Bitcoin isn’t as popular in Russia as it is in Latin America. Ilyukhin emphasised that both Countries were still looking for new ways to increase commerce because both nations wanted to maintain their economic alliance.
Russia and El Salvador have contemplated establishing a bank in the latter country to facilitate transactions in other currencies, including the Indian rupee, Russian ruble, and Chinese yuan.
However, El Salvador’s legal currency necessitates the employment of intermediate US and European banks, posing a considerable risk of Western intervention. Ilyukhin also saw cryptocurrency as a practical way for Russians to make payments freely in many countries.
El Salvador considers BRICS membership.
According to Ilyukhin, El Salvador is also thinking about joining the BRICS to help with its economic development. Ilyukhin also mentioned that the two countries might decide to open a Russian embassy in El Salvador, as the pro-Bitcoin country already has one in Russia.
The pro-Bitcoin country has taken an unbiased stance on the Ukraine-Russia conflict and has demonstrated resilience to Western influences. El Salvador’s neutral attitude on the Russia-Ukraine war, together with its resistance to Western pressures, has set the path for the country’s strong friendship with Russia. To further enhance bilateral contacts, Russia has explored restoring direct flights to El Salvador.
In 2021, President Bukele’s country became the first one to accept Bitcoin.
As legal tender. The president of the Latin American country, Nayib Bukele, made the announcement at the Bitcoin 2021 conference in Miami. According to Bitcoin Treasuries, the Salvadoran government owns 5,800 bitcoins worth up to $390 million as of this writing.
From September 2021 to May 2024, the Latin American country mined 474 bitcoins using a volcano-powered geothermal power facility.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source : Cryptopolitan