Russia Adopts Bitcoin for Oil Trade with China and India

Russia has started using crypto assets like Bitcoin in oil trade with China and India to navigate Western sanctions. While Russia previously supported crypto usage for international trade, its role in oil transactions had not been reported. The shift follows challenges in converting Chinese yuan and Indian rupees into Russian roubles, making digital assets a convenient alternative. https://TWITTER.com/thecryptobasic/status/1900486265364946981 Russia’s Oil Trade Adopts Crypto Transactions Per Reuters , some Russian oil firms have incorporated Bitcoin, Ethereum, and stablecoins like Tether (USDT) into their transactions. These digital assets help convert foreign currencies into roubles, easing trade settlements. While crypto transactions still represent a small share of Russia’s $192 billion oil trade, the trend is gaining traction, according to the International Energy Agency. According to Reuters, crypto has already played a role in circumventing U.S. sanctions in countries like Iran and Venezuela. Similarly, Russia's adoption of digital assets in oil trade aligns with global precedents. Venezuela recently expanded its reliance on crypto for crude and fuel exports after renewed U.S. sanctions.  Russia Implements Alternative Payment Systems Russia has developed multiple payment frameworks to bypass traditional financial restrictions. USDT is one of the tools employed, but not the only one. A researcher tracking crypto transactions for sanctions evasion confirmed this, highlighting Russia’s diversified approach. However, details about the extent of these systems remain undisclosed due to confidentiality agreements. The Russian central bank previously acknowledged that sanctions had caused delays in cross-border payments, affecting the economy. This challenge has prompted businesses to explore alternative financial instruments, including cryptocurrencies. By leveraging digital currencies, Russia aims to maintain trade flows despite economic barriers. Other Regulatory Developments in Russia This report comes after Russia's apex bank had proposed legalizing crypto asset trading for a select group of investors.  Notably, the proposal aligns with President Vladimir Putin’s directive to establish regulatory frameworks for digital investments. The Bank of Russia confirmed the plan in a submission to the government.