As a seasoned crypto investor with a decade of experience under my belt, I must admit that the recent move by Russian lawmakers to allow the use of cryptocurrencies in global trade settlements is a game-changer. Having witnessed the ebb and flow of various market trends, I can confidently say that this decision comes as a strategic response to the financial pressure exerted by Western sanctions.
Lawmakers in Russia have given their agreement for using cryptocurrencies in international business transactions. This move is a response to financial constraints imposed by Western sanctions. On Tuesday, this bill was initially accepted by the State Duma, which is the lower house of the Russian Parliament. Essentially, this law allows companies to conduct cross-border trades using digital currencies.
Anatoly Aksakov, head of the Duma, considers it historically significant for the financial sector. As Mati Greenspan, CEO of Quantum Economics, explains, this is reasonable because Bitcoin transactions cannot be halted by any government or bank. Previously, Russia had not allowed such transactional freedom to its citizens, but given the vast use of cryptocurrency in commerce, it’s impossible to overlook it now.
In the past year, the value of a single Bitcoin has significantly increased, surging over 100%. This surge is attributed to heightened anticipation regarding the approval of America’s first spot Bitcoin exchange-traded funds and the upcoming halving event for Bitcoins, which restricts the production of new coins. Currently, one Bitcoin is worth approximately $66,000, marking a rise of more than 120% in the last year.
Russia Adopts Crypto for Cross-Border Payments to Counter Western Sanctions
This change in legislation is one of the measures that Russia is taking to overcome the economic challenges imposed by the West. To address these challenges, Russia includes cryptocurrencies in its worldwide payment systems to counter these sanctions. The new law gives authority to the Central Bank of Russia to launch a pilot project on the use of cryptocurrencies in cross-border payments that will assist Russia in bypassing challenges from the SWIFT system as well as the dominance of the US dollar and Euro.
To conclude, Russia is leading the push for the BRICS Infrastructure Project, a collaboration between Brazil, India, China, and South Africa. This initiative aims to make it simpler to use local currencies in trade among these nations. The objective behind this approach is twofold: reducing the impact of Western financial systems and strengthening economic ties within the BRICS alliance.
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2024-08-04 05:07