Can oil be exchanged for Bitcoin (BTC)

Plagued by the sanctions imposed following the invasion of Ukraine, Russia is looking for countermeasures to boost its economy. In the process, bitcoin (BTC) and other cryptocurrencies have been sensitive as an alternative for international commercial transactions. However, the Russian Ministry of Finance advocates considering them as assets rather than means of payment. Moreover, their use in trade should not, according to him, concern oil.

Towards a new status for cryptos in Russia

In an interview with local media, Ivan Chebeskov, the director of the financial policy department of the Ministry of Finance of Russia, made some confidences about the place that cryptoassets could have in the country.

According to him, the Ministry of Finance would rather support the adoption of cryptocurrencies as assets and not as currencies in the strict sense. As such, they could be used for barter, as long as an entity ensures that they are exchanging their digital assets for a product or service.

On the other hand, according to Chebeskov, the use of cryptographic devices for settlements is a possibility only for small businesses owned by the private sector. Consequently, this approach does not apply to public establishments.

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

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.

Moreover, he believes that the use of cryptoassets is only possible within the framework of relatively modest contracts and with allied countries favorable to this practice.

Russia unites against the United States

In his speech, Chebeskov returned to the new position of the Russian Central Bank regarding cryptocurrencies. He insisted that this institution, as well as most commercial banks, has no objection to their use for international trade operations.

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

Indeed, the strengthening of punitive measures against Russia has resulted in the convergence of the opinions of these two institutions on cryptocurrencies. From the beginning, the Ministry of Finance has defended the use of cryptocurrencies in Russia as an intermediary for exchanges. On the other hand, the Central Bank pronounced an absolute embargo with regard to cryptoassets and the activities ofmining.

In addition, the official referred to the decision of the United States to put in place measures to prevent Russia from circumventing the sanctions by using cryptocurrencies. According to him, cryptoassets are not as obscure as one might think.

“Why do the Americans say they will try to block? Because in fact, all public cryptocurrencies are quite easy to trace. It is a myth to think that they are very opaque »Chebeskov said.

The legal status of cryptocurrencies is still unclear in Russia. Although they provide a viable solution to the country’s current economic problems, the country is not ready to recognize them as legal tender. Yet countries like El Salvador and the Central African Republic have already taken the leap.

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Junie MAFFOCK

I came to blockchain out of curiosity and stayed with it out of passion. I was amazed by 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.

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