Simply Bitcoin: Russia to Use Bitcoin for International Trades
One recurring investment theme that pops up every few years is the “death” of the US dollar as the world’s reserve currency. Currently, the buck is used in international trade, and commodities are globally priced in dollars.
Some countries have looked to de-dollarize. They have done so by using bilateral agreements between two countries to only deal in their respective currencies. Or by building reserves of multiple foreign currencies or commodities.
Now, Russia is looking to avoid international sanctions for its invasion of Ukraine. It’s pursuing multiple avenues, including choking off natural gas exports to Western Europe.
More interestingly, while the Russian government hasn’t been too favorable towards cryptocurrencies, there’s been a push there. The Bank of Russia has agreed to legalize cryptocurrencies for cross-border payments.
Given that cryptocurrencies are essentially private networks with no government oversight, this allows Russia a way to access international markets. And it can do so without having bank accounts frozen.
This is just another move towards global cryptocurrency adoption. Other countries have already embraced support for cryptocurrencies. And while Russia’s moves are being done to avoid sanctions, further adoption is likely in the future.
As cryptocurrency networks grow, their value should increase over time. The further adoption of cryptos points to a bullish outlook for the future.