Russia passed the Crypto Mining Act in August 2024, ending its regulatory scope. The country reportedly tested cross-border crypto payments as it wanted an alternative to the US dollar to resolve international trade transactions.
After initially rejecting the idea of cryptocurrency, the well-known conservative Russian Central Bank ultimately eased its stance on the potential use of cryptocurrency as a recognized means of payment.
This month, the central bank launched an experimental legal framework that allowed “highly qualified” investors to trade cryptocurrencies, but stopped recognizing cryptocurrencies as fiat currency.
The Reuters report is the first to suggest that Russia is using codes for its oil trade.
Unspecified Russian oil companies use bitcoins, ether and stubcoins such as tethers to “smooth conversion of Chinese Yuan and Indian Rupees to the Russian ruble,” Reuters said, citing an anonymous source.
The transactions supported by the crypto are only a small portion of Russia’s overall oil trade, but they are reportedly growing.
Reuters is said to have already prevented Iran and Venezuela from using cryptocurrencies to avoid using the US dollar for energy trading.
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