Can oil be exchanged for Bitcoin (BTC)

Pressing sanctions imposed after the invasion of Ukraine, Russia is seeking countermeasures to boost its economy. In the process, bitcoin (BTC) and other cryptocurrencies were considered in exchange for international commercial transactions. However, the Russian Ministry of Finance recommends considering them as assets rather than as a method of payment. In addition, their use in trade should not, in his view, be related to oil.

Towards a new status for cryptos in Russia

In an interview with local media, Ivan Chebeskov, director of the monetary policy department of the Russian Ministry of Finance, expressed confidence in a number of secrets about the possible place of crypto-facilities in the country.

According to him, the Ministry of Finance would prefer to support the acceptance of cryptocurrencies as assets and not as currencies in the strict sense. So they could be used for barter, while an entity is trying to exchange its digital assets for a product or service.

On the other hand, according to Chebeskov, the use of cryptocurrencies for settlements is considered a possibility only for small private sector-related businesses. Therefore, this approach does not apply to public establishments.

“The task is to give an alternative, not to say that Russia is now paying for everything with cryptocurrency”he said.

Another important restriction: Russian oil should probably not be exchanged for bitcoin or any other cryptocurrency. The official justified this decision by citing the large export volumes.

Furthermore, it believes that the use of cryptocurrencies can only be used in the framework of modest contracts and with associated countries that are favorable to this practice.

Russia agrees against the United States

In his speech, Chebeskov returned to the new position of the Central Bank of Russia regarding cryptocurrencies. He argued that neither this institution, nor most commercial banks, were against their use for international trading operations.

” We already have two points of contact with the Central Bank: mining and international settlements. For some things we get closerChebeskov concluded.

Indeed, the strengthening of punitive measures against Russia has led to the convergence of the views of these two institutions on cryptocurrencies. From the beginning, the Ministry of Finance has protected the use of cryptocurrencies in Russia as an intermediary for exchanges. On the other hand, the Central Bank proposed a embargo on the crypto-assets and activities of Conradh na Gaeilgemining.

In addition, the official referred to the US decision to implement measures to prevent Russia from violating sanctions through the use of cryptocurrencies. According to him, cryptocurrencies are not as obscure as you might think.

“Why do Americans say they will try to stop it? Because in fact, all public cryptocurrencies are relatively easy to track. It’s a myth that they are very opaque »said Chebeskov.

The legal status of cryptocurrencies is not yet clear in Russia. While they offer a viable solution to the country ‘s current economic problems, the country is not ready to recognize them as legal tender. But countries like El Salvador and the Central African Republic have already taken the leap.

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Junie MAFFOCK

I came across a blockchain out of curiosity and stayed with it out of passion. I was amazed at the possibilities it offers through its various use cases. With my pen, I hope to help democratize this technology and show how it can help make the world a better place.