Russia turned to cryptocurrencies to facilitate oil trade in China and India, which effectively exceeds western penalties at $ 192 billion oil trade, Reuters reportedcites resources familiar with this matter.
The country slowly moves deeper into the cryptocurrency space. Only this week, the The Bank of Russia has submitted proposals To create an experimental legal regime (ELR) that lasts three years, allowing a “limited group of investors in Russia” to exchange cryptocurrencies.
Some Russian oil companies use bitcoin, ether, and stablecoins such as Tether (USDT) to convert payments made to Chinese Yuan and Indian rupees into rubles, the Reuters report said. These transactions currently represent a portion of Russian oil trade.
Other country penalties, including Iran and VenezuelaCrypto was used to maintain trade while avoiding relying on the US dollar, the dominant currency in global oil markets.
Russia has developed many payment systems to navigate penalties, and crypto is one of the many tools the country uses. FIAT currencies remain the main method used in Russian oil transactions, and other workarounds include the use of currencies such as the United Arab Emirates Dirham, Reuters said.
The report also added that although penalties have been raised, Russia is likely to continue to use crypto in oil trading as seen as a convenient, flexible tool. Meanwhile, the country is currently looking to get its largest banks Support a digital ruble for retail and commercial use.
The Bank of Russia says that a ruble-backed central bank digital currency can be used as a tool against penalties Back in 2021.
Read more: US belt countries such as Iran leaning against crypto: chainalysis
