• Thu. Apr 25th, 2024

Russia to Accept Bitcoin for Gas and Oil

Hassan Mehmood

ByHassan Mehmood

Apr 9, 2022

The top coin has recently started to rally, reaching $43k in the last 24 hours. According to the metrics from on-chain data firms, Bitcoin prices gained 17% in the last ten days and increased by 5% on intraday trading. For the same period, around $10 billion was added to the market cap of the top coin, and it started to reach around $835 billion.

According to the media reports, the main reason for the upsurge in the Bitcoin prices is the announcement of the Russian government. Chairperson of the Energy Committee of Duma, Pavel Zavalny, recently stated that the region is ready to sell the gas units against Bitcoin. He appealed to countries like China and Turkey, who have been offering to make the purchases in Yuan or Lira as a ruble substitute.

Duma Energy Committee head, Zavalny also claimed that the big players in the Asian region like Turkey and China are offering to make the purchases in the form of Bitcoin. He further explained that the government of Russia does not seem to have any issues with the matter. Recently, President Putin issued a statement claiming that it would stop accepting any type of fiat currencies from the unfriendly nations for payment of natural resources.

At present, the ongoing crisis in Russia is a major headache for the European Union. On one end, the region is planning to impose harsh financial sanctions on Russia. However, there is also heavy dependence on fuel coming from the Russian region. In the same vein, US President Biden has decided to impose a ban on all oil import orders from Russian territory.

Russia’s Decision About Unfriendly Countries

NATO countries are also mulling the prospect of discarding all purchases from the Russian energy sector. Zavalny described unfriendly nations like the ones that are participating in imposing financial sanctions on Russia. He, however, clarified that the government is considering accepting payments in the form of hard money like gold bars or rubles.

Last year, Putin claimed that Bitcoin is not suitable for oil payments. However, under the current situation, Kremlin has started to warm up to the nascent industry. Meanwhile, the Finance Minister’s office of Russia has also made a proposition to regulate cryptocurrencies rather than imposing a ban on the sector.

Hassan Mehmood

Hassan Mehmood

Hassan Mehmood, a valued writer at Big Trends Signals, uses his profound online trading expertise to produce in-depth guides and unbiased reviews, enabling traders to navigate digital marketplaces efficiently.

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