The Russian government sees bitcoin as a payment method for small business transactions, not for oil exports, the Russian Finance Ministry said. A senior official stressed that the sector means that cryptocurrencies can be used for barter transactions, but not as legal tender.
Finance Ministry Says Crypto Payments Not Applicable to Russian State Settlements
As far as international transactions are concerned, cryptocurrency payments are seen by Moscow authorities as an alternative to contracts for small private companies, but this will not affect oil shipments in Russia. Ivan Chebeskov, the head of the Financial Policy Department of the Ministry of Finance, recently spoke to reporters on the matter and provided clarification.
The senior official said the ministry is proposing to use cryptocurrencies as an asset rather than a means of payment. He explained that this means digital currencies can be used for barter transactions — when buyers formally exchange bitcoin or other cryptocurrencies for a product or service. Citing RTVI, Chebeskov elaborates:
The task is to provide an alternative, not to say that Russia is now paying for everything in cryptocurrencies. This has nothing to do with state settlements, but only with private business.
Minfin representatives pointed out that due to the high volume of these exports, oil is hardly ever sold for Bitcoin. Not all Russian partners will be able to transition to the national currency despite the increasing difficulty of paying in dollars and euros, but he believes that cryptocurrency settlements will only be possible with relatively small contracts and friendly countries open to accepting coins possible.
Chebeskov’s comments were made earlier statement Pavel Zavalny, chairman of the parliamentary energy committee, mentioned bitcoin as a potential replacement for Western currencies in Russia’s energy exports, especially natural gas exports.
At the same time, the Central Bank of Russia soften Its stance on crypto payments in the context of foreign trade relations. In May, a provision allowing Russian companies to conduct such transactions for import and export purposes was introduced. Add to The new bill “On Digital Currency” drafted by the Ministry of Finance.
The report details that recognizing cryptocurrencies as property in the Russian Civil Code and amending the provisions on barter transactions in the legislation governing the foreign economic activities of Russian entities is also necessary to open doors for such transactions.
The United States and its allies have been trying to prevent the Russian Federation from using cryptocurrencies to circumvent sanctions imposed on its ongoing military incursion into neighboring Ukraine. RTVI noted that some global crypto platforms have blocked Russian accounts.
Do you think Russia might change its mind about crypto payments in oil trade? Share your expectations in the comments section below.
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