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Saturday, February 4, 2023

Russia May Accept Bitcoin for Gas Exports – Lawmaker Says

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Russia May Accept Bitcoin for Gas Exports – The Russian Federation has taken moves in response to unprecedented Western sanctions which were imposed for its invasion of Ukraine. The energy-rich country is now seeking for other currencies to replace the euro and the US dollar in its gas trade.

On Wednesday, Russian President Vladimir Putin stated that “unfriendly” countries will be required to pay for natural gas imports in rubles. This includes EU member states, many of which rely on Russian gas supply for heating and electricity generation.

Sanctions imposed by the United States and Europe are harming Russia’s economy and fiat currency. Some of the initiatives are focused on the country’s foreign exchange reserves and gaining access to the global financial system.

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The currency regained some lost ground after Putin’s announcement, but gas prices in Europe surged.

“Why should we trade in a currency if we can’t get it, hold it, or even use it to pay for things?” On Thursday, Pavel Zavalny, the head of Russia’s lower house of parliament’s Energy Committee, told Russian media.

“Gas is just the beginning; this will have far-reaching implications for a variety of other resources.” “Let them pay in hard cash, which for us is gold, or even in other currencies which are most convenient for us,” the lawmaker said.

He went on to explain:

The set of currencies is changed on a regular basis. If bitcoins are available, we’ll trade them.

According to the official, a number of European countries are now interested in buying Russian petroleum in rubles. “All we have to do now is work out some organizational issues and sign a few more contracts.”

In respect of our contractual obligations, nothing has changed. “If they don’t pay for it, there will simply be no gas,” the legislator said.

Also Read: Spanish Treasury Admits That Cryptocurrency Holdings Don’t Need to Be Declared Under Model 720

Russia was striving to reduce its reliance on the dollar even before the war situation in Ukraine.

According to Deputy Foreign Minister Alexander Pankin, who spoke to Interfax in October, Moscow might partially replace the dollar in its currency reserves and trade settlements with other fiat currencies and possibly digital assets like bitcoin.

In a recent interview with CNBC, Putin indicated that bitcoin could be used for oil transaction settlements in the future.

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